RE:CIBC: Interesting observationsThis is going to bring a massive boost to revenues. Even before I read this article, I booked two vacations for later next year, after hearing that there were more two vaccines with 95% efficacy. I also talked to a number of friends who were in various stages of doing the same thing. This immediate change in booking sentiment is excellent news, and nodes extremely well for the stock. There is definitely HUGE pent up demand.
lb1temporary wrote: Airline Traffic Monitor –
November 2020 Airline Web Traffic Has Picked Up Since Positive Vaccine News
Key Points
Key observations from our Airline Traffic Monitor:
1. Vaccine Announcement Has Resulted In A Boost To Airline Web Traffic: Recent positive COVID-19 vaccine announcements coincided with an uptick in web traffic for the Canadian and U.S. airlines. With sights on a vaccine being available to the public in H1/21, this looks to have driven a spike in interest amongst potential vacationers. This reconfirms our view that there is significant pent-up demand for leisure travel, and as we get closer to a vaccine and quarantine restrictions are removed, we expect a step-up in air traffic from current levels. The recent trends may be an early indicator of an improvement in airline bookings.
2. October Air Traffic Trends – Flat M/M But Sees Degradation Towards End Of Month: While October’s air traffic and travel sentiment trended better than we would have expected given rising COVID-19 cases, we did see a drop-off as we exited the month. Global air ticket sales were down roughly seven points at down 57% Y/Y the last week of October versus being down ~50% Y/Y in mid-October, highlighting that while air traffic was holding in even when we saw the initial “second wave” in COVID-19 cases, we have begun to see the impact from governments re-imposing travel restrictions and social distancing requirements. That said, while COVID cases are rising, we continue to point out the travel has found a higher floor from what we saw back in the spring (even with record daily case counts in Canada and the U.S.).
3. Signs Of A Strong Peak Season For Air Cargo: Expectations are for a record peak season and this is reinforced when looking at web traffic trends for some of the largest courier companies in Canada and the U.S. We continue to see the acceleration in e-commerce and the impact of COVID-19 on consumer buying habits as a structural tailwind for Cargojet.
4. Corporate Travel Sentiment Sees Modest Bump In October: Corporate travel sentiment as measured by web traffic at globalamexbusinesstravel.com saw a modest bump in October, up 10% M/M. While leisure travel will continue to lead the recovery, recent comments from airlines suggest they are seeing a slight uptick in business traffic.