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Parker

How long before the aviation industry recovers and airline stocks stabilize?

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It has been a downward trend for the aviation industry since the Covid-19 outbreak. However, there now seems to be a turning point in sight with increased bookings reported amid the expected resumption of local and international freights. Can you explain how  the airline industry will recover as this also affects their stocks? 

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Hi Parker,
Being one of the hardest-hit industries by the COVID-19, shares of airline companies have fallen over the last few months as investors leave for fear that it will take years before the industry recovers. Even though the industry has faced several crises before, none can match the current situation. But how will their stocks recover?
One way to salvage the situation is by financially supporting the airline industry so that it doesn't collapse. Bailout, which many governments have promised to offer to their respective airlines as part of the economic stabilization package, will help the industry stay afloat. However little, the bailout will help the beneficiary airlines pay employees and carry out maintenance as they wait to resume normal operations.
Rather than wait for the disease to be fully contained before airlines resume operations, countries should ease (or lift) the travel bans while airlines change the business model to accommodate the pandemic. They may run flights with fewer passengers or space out seats to make passengers feel safe to travel again. That way, the industry can continue to operate hence avoid going out of business.
While it will take time before the airline industry recover, it should fight to stay afloat, waiting for the new normal for travel. That way, it can gain investors' trust and aid in airline stock recovery.

On the bright side, things are beginning to look up with a possible resumption of international flights very soon upon the development of successful vaccines by the US and UK.  

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