Airline Stocks: is it a Market Opportunity? Published on Dec 30, 2020
The airline industry is considered to be a crucial part of
the economy. It historically moves with the economic cycles, which made
multiple companies declare bankruptcy and failure due to the past downturns in
the economy and caused multiple mergers and acquisitions. Today, four airlines
control about 80% of the U.S. market; American Airlines, Southwest Airlines,
Delta Airlines, and United Airlines.
The COVID-19 pandemic has threatened the industry, affecting
its revenue to fall 90% year-over-year during the second quarter of 2020. This
was due to the decline in travel demand, yet it did not lead to the declaration
of bankruptcy. Moreover, a 50% of reduction in the stock value took place, not
to mention that others have suffered even more as the pandemic is spreading
globally with no cure, and the vaccine is still showing side effects and is not
widely distributed.
Airlines have managed to raise more than $50 billion in
private funding, in addition to government aids during the first half of this
year.
Below are the four company stocks that dominated the market
share of leading U.S. airlines for the last year.
