Skip to main content

Helane Becker of Cowen predicts that airlines are preparing for an upcoming economic decline.


Helane Becker, Cowen senior research analyst, joins 'The Exchange' to discuss the airline trade and where to find opportunities in the sector. For access to live and exclusive video from CNBC subscribe to CNBC PRO: » Subscribe to CNBC TV: » Subscribe to CNBC: Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: Follow CNBC on LinkedIn: Follow CNBC News on Facebook: Follow CNBC News on Twitter: Follow CNBC News on Instagram: #CNBC #CNBCTV...(read more)



BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
Airlines have always been one of the most sensitive industries when it comes to economic indicators, and Cowen's Helane Becker believes that they are already anticipating a recession. Her analysis is based on the fact that airlines and airports are taking steps to cut down on expenses, both in terms of staff and capital expenditures. Becker cites several examples of airlines and airports that are making cutbacks. For instance, Delta Air Lines recently announced that it would be offering voluntary severance packages to some of its employees as part of its cost-saving efforts. Similarly, American Airlines has also announced voluntary leave and early retirement packages, while United Airlines has announced that it will be reducing capital expenditures by $2.5 billion this year. Meanwhile, airports such as San Francisco International Airport (SFO) have seen a sharp drop in passenger numbers and are therefore reducing their budgets accordingly. These cutbacks are a clear indication that the airlines and airports are bracing themselves for a potential recession. In fact, some airlines have already been hit hard by the current economic slowdown. For example, Southwest Airlines recently reported a net loss of $94 million in the first quarter of 2020, largely due to lower demand and higher operating costs. According to Becker, the airlines and airports are taking a cautious approach to their operations in order to conserve cash and ensure their survival in the long term. She believes that this strategy is the right one, as the airlines will need to be resilient in order to survive the economic downturn. In addition, it may take some time for demand to recover even after the pandemic is over, as many customers are likely to be hesitant about traveling until the situation stabilizes. The good news, according to Becker, is that the airlines are better prepared for a recession now than they were during the financial crisis of 2008. Back then, many airlines were struggling with high debt levels and were therefore vulnerable to the economic downturn. However, the situation is different today, as many airlines have improved their balance sheets and have greater liquidity thanks to low fuel prices. Overall, Becker's analysis suggests that the airline industry is bracing itself for a tough few years, but that it is better prepared to weather the storm than it was before. With careful management and cost-cutting measures, the airlines may be able to survive the recession and emerge stronger in the long run. https://inflationprotection.org/helane-becker-of-cowen-predicts-that-airlines-are-preparing-for-an-upcoming-economic-decline/?feed_id=94228&_unique_id=6453af6a27507 #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #business #CNBC #economy #Finance #investing #kellyevans #money #news #newsroom #politics #Stocks #theexchange #WallStreet #RecessionNews #breakingnews #business #CNBC #economy #Finance #investing #kellyevans #money #news #newsroom #politics #Stocks #theexchange #WallStreet

Comments

Popular posts from this blog

"Is Birch Gold Group a Reliable Choice for Your 2023 Gold IRA Investments?" - A Quick Review #shorts

In this Birch Gold Group review video, I go over what makes this Gold IRA company unique, the pros and cons, their fees, minimums, and much more. Get their free guide here: 👉 FREE Resources: ➜ Gold IRA Company Reviews: Birch Gold Group boasts high ratings from consumer advocate groups. With an A-plus rating from the Better Business Bureau, a triple-A rating from the Business Consumer Alliance, and high marks from Trust Link, Trustpilot, and Google Business, Birch Gold is a top choice to trust your hard-earned retirement savings. Birch Gold Group’s low initial investment minimum is another edge it has over its competitors whose minimums can range from $25,000 to $50,000. A beginning $10,000 minimum investment is all that is required to start a GOLD IRA with Birch which is advantageous for first-time investors. Spanning nearly two decades, Birch Gold Group’s mission and philosophy focus on a commitment to understanding your needs and finding the right fit for you. Their

Should I Rollover My 401k to an IRA? YES! #shorts #retirement #financialfreedom

Should I Rollover My 401k to an IRA? YES! #shorts #retirement #financialfreedom Should I Rollover My 401k to anIRA 🤔 || 401k to IRA Rollover Pro's & Con's In this video, I want to talk about rolling over your 401k to an IRA Rollover and if that makes sense for your retirement planning . I want to look at the pro's to rolling over a 401k and also the con's to rolling over a 401k. When you should rollover your 401k to an IRA and when you should NOT rollover your 401k to an IRA. Let's talk about when you should NOT rollover your 401k to an IRA: 1. You are still working and are under the age of 59.5 2. You are 55 and considering retirement (Rule 55) 3. Increased creditor protection in a 401k 4. 401k's offer loans--IRA's do not offer loans Why you SHOULD rollover your 401k to an IRA 1. More investment choices in IRA over 401k 2. Lower investment fees 3. Convert IRA to Roth IRA (Roth IRA Conversion) 4. Consolidation from multiple 401k'