Restock the Terra chips... Airlines are (kind of) back. Airline stocks surged on some high-flying TSA data: on Sunday, the number of people passing through US airport checkpoints was the highest since pre-lockdowns. Delta and American shares surged over 7%, United soared 9%, and Southwest got a 5% bump.
It trends well, but does it end well?... Investors like how passenger numbers are trending, and this latest milestone has made hopes take off. But much of this surge is likely a result of the summer travel rush.
That October deadline is fast approaching... Even as passenger numbers improve, airline sales don't come close to breaking even with spending. Cash-strapped airlines have warned tens of thousands of employees that they might lose their jobs. Labor unions and airline execs have been pushing for $25 billion in extra aid to preserve jobs through March 2021. President Trump and over a dozen senators have backed them. But unless air travel dramatically picks up soon, even that might not be enough to tide over airlines.