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Latam: The Biggest Bankruptcy Yet

Virgin Australia produced $4b in revenue last year. Avianca, roughly $5b. Thai Airways, $6b. All are now bankrupt. And they were joined last week by an even larger airline.  Latam, with more than $10b in revenue last year, became the...

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America’s Airlines Start to Recover… A Little Bit

America’s economy is starting to reopen again — a little bit. And with this reopening, America’s airlines are starting to attract customers again — a little bit. It was all pessimism during first-quarter earnings season. The nine scheduled U.S. airlines...

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Covid’s Paradox: The Losers are the Winners

“We’re sure glad 2019 is over. 2020 has been so much better.” This is a quote said by absolutely nobody in the airline industry (passenger airlines, anyway). Nobody will disagree that the 2020 Covid-19 pandemic is the worst crisis the...

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Start Your Engines

Who’s ready to start a new airline in the U.S.? No, seriously. The history is pretty clear. There are few better ways to lose your money than launching a new airline. For that matter, investing in old airlines is a...

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Flight Path Unknown

Face masks. Blocked middle seats. Extensive aircraft cleaning and disinfection. Health screening before security. Flight attendants in protective gear. These are among the many ways in which airlines, airports, and governments around the world are grappling with a raging viral...

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Another Virgin Lost

Virgin America, Virgin Express, Virgin Sun, Virgin Nigeria, Virgin Samoa, Little Red… all gone. Same for Virgin Connect, the would-be name for Flybe, the first airline victim of the current virus crisis. Flybe’s part owner Virgin Atlantic, the very first...

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The 2020 Pancession

Like a sand castle washed away in the high tides, everything U.S. airlines built over the past 10 years is suddenly gone. Their muscular balance sheets. Their world-leading profit margins. Their resilient business models. Now, as they survey the ruins,...

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Is the Glass Half Full or Half Empty?

This much is clear: The world’s airline industry is experiencing its greatest crisis ever. Nothing in the past comes even close. But as governments provide massive support to distressed economies, as entire societies mobilize to defeat the pandemic, and as...

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Uncle Sam to the Rescue

Last time, it was the banks. This time, it’s the airlines. Last week, America’s government assumed the role of an insurance company during times of catastrophe, enacting a $2t aid package to soften the impact of Covid-19. There’s money for...

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Covid Crisis 2020: The Latest

Remember when IATA, giving its worst-case scenario on March 5, said airlines could lose $113b in revenue from the Covid-19 pandemic? That now seems trivial compared to what they’ll actually lose. With things changing so fast, IATA didn’t issue a...

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Covid Crisis 2020: The Latest

The Covid-19 virus crisis is now a full-blown pandemic affecting all corners of the earth, not to mention all airlines of the earth. In China, the worst might be over as the number of new cases reportedly decline. In Europe...

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The Crisis Deepens

It was supposed to be a routine JPMorgan investor conference. U.S. airline executives would assemble in New York City, describing a world of strong demand, constrained supply, falling oil prices, and a healthy U.S. economy. Then along came Covid-19. On...

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