MERISTEM INSIGHTS

PHOENIX NEEDED Another Rebirth for the Airline Industry

According to the TSA, airline travel has fallen approximately 95% amidst the Coronavirus pandemic. The major airlines have cut capacity by nearly 75% with an average of 9 of 10 seats empty on domestic flights. The U.S. government has offered significant assistance, including $25 billion in the forms of grants and loans. While the sudden shut down is unlike anything we have experienced, the chart below highlights a broader perspective - the airline industry has weathered other major events.

The ancient Greeks believed in a mythical bird called a Phoenix that would periodically die only to be born again from the ashes of its predecessor. As the industry has done in stressed times before - the airlines will need another rebirth to take flight again.

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