The One Thing Holding Back Airlines

And it’s showing signs of life [Click to view in browser](. Dear Reader, We have some BIG UPDATES for all you Markets and Minds subscribers. [And you need to take action now to make sure you don't miss out!]( Our newsletter got a complete makeover. We overhauled the format and layout of the newsletter, making it easier to read and simpler to follow. And gave it a nifty new title - THE JUICE [But you won't receive this newsletter unless you sign up HERE.]( Because pretty soon, Markets and Minds will disappear FOREVER! Proprietary Data Insights Financial Pros Airline Searches This Week Rank Name Searches #1 Delta 231 #2 American 61 #3 United 42 #4 Southwest 39 #5 Spirit 20 Pilot Shortage Plagues Airlines Labor shortages aren’t uncommon these days. Airlines face a particularly acute shortage of pilots. And some are getting creative with their solutions. Breeze Airways, a startup founded by David Neeleman of JetBlue, raised pay for pilots after seven months of operations. New hire first officers for the company will see an 11% increase to $61 to $68 per flight hour depending on their aircraft size. Other changes include: - GoJet Airlines, a Missouri-based regional airline, offers $20,000 bonuses to first officers, while pilots with enough experience can join as a captain with a $40,000 bonus. - Delta reduced its education requirements by eliminating a four-year college degree. - United opened a new flight school to act as a source of recruitment for its workforce. By 2025, the industry is expected to face a shortage of 34,000 pilots globally. Like the trucking industry, without a massive push to train and fill these spots, demand will far outstrip supply. That’s likely to lead to wages continuing higher until a balance is achieved. Sponsored [Man who called 2020 Crash: Huge Event in 2022]( A historic event in 2022 will cause a massive shift in the wealth divide. It could soon impact the wealth of thousands of Americans. [More here.]( Labor The One Thing Holding Back Airlines Key Takeaways - Business travelers can make up 12% of passengers but 75% of revenues on some flights. - While retail volume is back to pre-pandemic levels, business traveler revenue is at 50%. - Although Omicron hampered winter demand, airline bookings are showing signs of life in the last couple of weeks. From Delta (DAL) to Southwest (LUV), airlines are missing one key customer - business travelers. Recovery Relies on Companies You might be surprised to learn that retail travel has already returned to pre-pandemic levels. American Airlines (AAL) offered the following chart to explain the gap. Business travelers make up 12% of passengers but 75% of revenue on certain flights. These critical customers bring in steady revenues to hotels when they attend conferences and events, some choosing to stay a few extra days with their families. Some Signs of Life Using credit and debit card data, Bank of America analyzed airline bookings in recent weeks after Omicron slashed travel at the end of December. Here are the highlights: - Both domestic and international booking volumes improved to down -27.4% vs 2019 (vs -30.4% last week) and down -39.7% vs 2019 (vs -44.0% last week), respectively. - Domestic leisure (tickets sold through OTA channels) improved modestly to down -16.1% vs 2019 (vs -17.7% last week). - Pricing improved in the aforementioned channels by approximately 4-5% pts from last week, which is a sign of improvement after pricing dropped to start the year. - Corporate bookings are rebounding, with bookings through large travel agencies and small travel agencies improved to down -54.1% vs. 2019 and down -22.3% vs 2019, respectively. An Uncertain Future To kick off the year, the Consumer Electronics Show (CES) had many participants join virtually as Omicron cases raged across the U.S. This reality doesn’t appear to be changing anytime soon. And with demand exceeding supply in many industries, the need for direct sales calls is waning. The Bottom Line: Business travel waxes and wanes based on Covid cases. While it may jump in fits and starts, organic growth should bring it to pre-pandemic levels sometime in the next year or two. Discount airlines like Southwest and Spirit (SAVE) rely less on business travelers than standard airlines like Delta and United (UAL). However, the deals may be in the most beaten-down names like American Airlines. News & Insights Freshly Squeezed - [10 Best Monthly Dividend Stocks to Buy for 2022]( - [BZ Chart Of The Day: Is The Correction Over?]( - [A historic event in 2022 will cause a massive shift in the wealth divide. It could soon impact the wealth of thousands of Americans. (Sponsored)]( - [Monday Market Mania – Ending our Worst Month Since March 2020]( - [Get our top stock pick with an in-depth analysis every weekday when you sign up for The Spill, the investment newsletter with ideas you won't find anywhere else.]( [Make sure to sign up for The Juice to keep receiving our premier investment newsletter.]( # [submit to reddit]( [submit to reddit]( [submit to reddit]( To ensure delivery of all emails, [whitelist us](. Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright ©2022 InvestingChannel. All rights reserved. 1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc. newsletter is for information purposes only and opinion-based. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or against losses. No representation or implication is being made that using any of these methodologies or systems will generate returns or ensure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions. [Link](