Issue Overview

China’s Uncertain Recovery

China’s Uncertain Recovery

July 26th, 2020 at 7:44 PM EDT
17 min read

Issue Overview

U.S. airlines sounded common themes as they disclosed gargantuan second-quarter losses. Demand recovery was promising, until it wasn’t. Costs are down sharply, but more painful labor cuts are necessary. Corporate and international traffic volumes remain negligible. Carriers are dialing back planned capacity for the fall. There’s more than enough liquidity on hand to endure current rates of cash burn. Only with a Covid-19 vaccine, airlines seem to agree, will demand conditions start to normalize.

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