🇺🇸 American Airlines has an ego

American Airlines’ profit got airborne | Hermès is still bougie and booming | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for October 21st in 3:13 minutes. 🤷‍♀️ Today’s markets are more unpredictable than ever, so join our [Modern Investor Summit]( to meet an incredible line up of pro investors who can help you react to an ever-changing scene. Register before midnight on October 23rd, and you could win a brand-new iPad too. [Get your free ticket now]( Today's big stories - American Airlines' profit took to the skies last quarter - Here's what previous bear markets can’t tell you about this one – [Read Now]( - Fashion giant Hermès reported truly luxurious quarterly results American’s Dream [American’s Dream] What’s Going On Here? Self-assured American Airlines [reported]( better-than-expected quarterly results on Thursday. What Does This Mean? American Airlines confidently ramped up its forecast for its third-quarter results last week, and turns out it was right to get investors excited: the airline – one of the US’s biggest – boasted that it made 13% more revenue last quarter than at the same time in 2019, before the travel-stopping pandemic hit. That’s bragging rights in itself, so it’s even more impressive that American pulled that off while flying 10% fewer flights than it did back then, making up the difference (and more) by charging customers extra for their getaways. In fairness, the airline had to do something to cover fuel costs that had nearly doubled from the year before, and labor costs that were up 12% too. But it sure had cash left over: American swaggered away with almost half a billion dollars in profit, and investors only bolstered its self-belief by sending its shares up after the news. Why Should I Care? Zooming in: Empty executive lounges. American’s rivals United Airlines and Delta Air Lines announced robust results of their own this month, so you’d think it was all smooth, uh, flying despite the economic slowdown. But while gleeful vacationers are keeping them happy, previously high-flying – literally and professionally – corporate customers have yet to swap video conferences for their pre-pandemic norm of business class flights. That corporate spending made up about a third of airlines’ revenues – and even more of their profit – before Covid, but the Global Business Travel Association now doubts we’ll see those levels again before 2026. Zooming out: The American nightmare. Airlines could still be bitten by an increasingly dire economy, mind you. The Federal Reserve’s “Beige Book” – basically a summary of how the central bank sees the economy – was [released]( earlier this week, and it signaled intensifying worries of a recession following early October’s “modest” and slowing US economic growth. You might also like: [Three hard truths about the next financial crisis.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=American’s Dream&utm_campaign=daily-global-21-10-2022&utm_source=email) Analyst Take This Isn’t The Global Financial Crisis. And It’s Not The Dotcom Bust. [This Isn’t The Global Financial Crisis. And It’s Not The Dotcom Bust.]( By Paul Allison, Analyst Past [bear markets]( can only tell you so much about the one we’re in now. So if you find yourself fretting about the possibility of [catastrophic losses]( like those from the dotcom bust or the global financial crisis, and trying to figure out [where the bottom actually is](, take a breath. Today’s S&P 500 index simply [isn’t the same]( as it was back in 1999, or 2007. So that’s today’s Insight: [why this bear market isn’t like the ones before it](. [Read or listen to the Insight here]( Win a free iPad Today’s markets are murky waters. But join our [Modern Investor Summit](, and you’ll hear from an incredible line up of pro investors – including the CEOs of Ark Invest, Ellevest, eToro, General Atlantic, and industry experts like Anthony “Pomp” Pompliano – who can help you navigate the rocky waters ahead. Oh, and [a brand-new Apple iPad]( could help clear things up a little too. Here’s how you can [win one](: Step 1: Be one of the first 500 to [sign up for a free summit ticket]( between today and midnight on Sunday. Step 2: Like our [Instagram post](, tag a friend in the comments, and share it to your story for bonus points. Good luck, Finimizers. [Get Your Ticket]( Birkin Is Workin’ [Birkin Is Workin’] What’s Going On Here? Luxury giant Hermès gets that bag, [reporting]( bumper quarterly sales on Thursday. What Does This Mean? Fashionistas the world over know there’s nothing quite like a Birkin bag, but that uber-desirable tote is just one of many offerings being snapped up in Hermès stores right now. The French haute couture fashion house was propelled to success by two key factors last quarter: one was that Covid restrictions eased in parts of China, letting affluent shoppers throng to the country’s many Hermès stores. The other was that US shoppers made use of the strong dollar to live out lavish Emily in Paris fantasies on European soil. That helped Hermès grow its total revenue – excluding the effects of currency swings – by over 24% last quarter versus the same time last year, around double what analysts expected. Why Should I Care? The bigger picture: Nice for some. Hermès results are more evidence that luxury brands are largely immune to the spending squeeze that’s hurting other retailers. Just look at high-end rival LVMH, owner of the Louis Vuitton and Christian Dior brands:  it [announced]( stellar results of its own last week, with affluent consumers – less impacted by the cost-of-living crisis – still shelling out on nice-to-haves while the rest of us scrimp and save. Given that, you'd be brave to bet against Gucci-owner Kering when it posts results this week. For you personally: It’s a rich man’s world. It might sound hard to believe, but global financial wealth actually grew 10.6% last year – the fastest growth in more than a decade, and equal to an extra $26 trillion in wealth ([tweet this](). That’s part of the reason we’re seeing a boom in luxury spending – and while most of us don’t have a spare $10,000 lying around to buy a fancy handbag, you could still benefit from the trend by investing in the key players. Case in point: Hermès and LVMH’s stocks have outperformed the S&P 500 by around 8% so far this year. You might also like: [How to work out what these luxury stocks are really worth.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Birkin Is Workin’&utm_campaign=daily-global-21-10-2022&utm_source=email) 💬 Quote of the day “Generosity with strings is not generosity. It is a deal.” – Marya Mannes (an American writer and critic) [Tweet this]( Today's Trending Topic These cities have the biggest potential bubble risks We all know that global property prices have shot up over the last few years, particularly in major cities. Now UBS has released a paper breaking down the places with the biggest housing bubble risk – and that could have [some knock-on effects for you](. There’s more where that came from: [follow Finimize on LinkedIn here](. 🌍 Finimize Live 🥳 Coming Up In The Next Week… All events in UK time. 🎧 [How To Invest In Music NFTs](: 6pm, October 24th 🗂 [How to Prepare Your Portfolio For Recession:]( 5pm, October 25th ⬆️ [How to Navigate Rising Interest Rates](: 1pm, October 26th 🔥 [How To Secure Your Financial Future Before 40](: 5pm, October 26th 👀 And After That… 🏆 [How To Spot Investment Opportunities In Gold](: 12pm, October 27th 🥗 [How Will The Global Food Crisis Impact Your Portfolio:]( 1pm, October 28th 🇨🇳 [What You Need To Know About Investing In China:]( 5pm, October 31st 🎨 [How To Buy And Sell NFTs:](6pm November 1st 🤑 [Asset Allocation For Young Investors](: 5pm, November 2nd 🙋‍♀️ [Ladies Investing Club Meetup](: 6.30pm, November 2nd (in person) 😎 [How To Build A Portfolio Ready For The Next Decade](: 1pm, November 3rd 💰 [Strategies For Market Volatility:]( 1pm, November 8th 🔧 [Tools Value Investors Use For Turbulent Times:]( 6pm, November 10th 🌍 [How To Build An Eco-Friendly Crypto Portfolio:]( 1pm, November 14th 🚀 [Modern Investor Summit](: 12pm, December 6th-7th 🎯 On Our Radar - The female gaze. 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