The airline industry is facing continued turbulence from the mid-air incident involving a Boeing 737 Max 9 plane (BA) during an Alaska Air flight (ALK). The line of particular jets is still grounded as the FAA and Alaska Air continue their investigations, hundreds of flights have been canceled, and United Airlines (UAL) claims this will cause a hit to its earnings.
Steve Trent, Citi Managing Director and Equity Analyst, joins Yahoo Finance to discuss the impacts the incident continues to instill on airlines and how it will affect the sector at large.
"In terms of the bookings, probably that's still way too early to tell when we think about what's been booked close in and the pipeline looks good," Trent explains. "I think in terms of the potential earnings exposure, roughly speaking, kind of rule of thumb, we kind of think about every 1% reduction in available seat mile growth translates into roughly a 2% reduction in pre-tax earnings. So there can be some nuances around that with respect to where we happen to be with jet fuel prices and what have you."
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
"lasting" - Google News
January 25, 2024 at 04:37AM
https://ift.tt/2qztEI3
The lasting impacts of Boeing 737 groundings on airlines - Yahoo Finance
"lasting" - Google News
https://ift.tt/xcEKG07
Shoes Man Tutorial
Pos News Update
Meme Update
Korean Entertainment News
Japan News Update
Bagikan Berita Ini
0 Response to "The lasting impacts of Boeing 737 groundings on airlines - Yahoo Finance"
Post a Comment