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April 2020


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[TRACKING AIRLINES…] ⠀ “The airplane became the first World Wide Web, bringing people, languages, ideas, and values together.” – Bill Gates ⠀ COVID-19 continues to spread throughout the United States with cases breaking the 200,000 mark this past week. Regulations have tightened leading to widespread economic headwinds, while some industries feel the adverse effects more than others. ⠀ Traveler throughput at TSA checkpoints has declined approximately 94% year-over-year, from ~2.2 million per day in April of 2019 to 136,023 in 2020. ⠀ Turbulent Times ⠀ With travel demand pulling back significantly, airlines are forced to navigate rough waters – from grounding airplanes to tapping credit facilities. Many have compared the impact to the aftermath of 9/11 which dealt a blow to the U.S. airline industry that lasted for years. ⠀ As the U.S. government seeks to distribute funds through the #CARES Act, it will be interesting to see how airlines respond. Companies like Southwest Airlines have expressed interest, alongside American Airlines. ⠀ Beyond the airline industry, large scale declines in travel demand are having second- and third-order effects as well – keeping these factors in mind is important going forward. This serves as #data to review today, but will also prove vital to track as we move to the recovery phase.

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