Post by
lb1temporary on Apr 14, 2023 8:33am
CIBC: Airlines Q1 preview
Airlines & Aerospace – A Lot Of Moving Parts
Commercial Aviation –Demand Up But So Are Costs -
Canadian commercial air passenger traffic continues to recover. In Q1/23, passengers through the 17 largest airports totaled 13.4MM versus 13.3MM in Q4/22. This is up 101% Y/Y and down 8% versus Q1/19. Similarly in the U.S., in Q1/23, air passengers through the TSA totaled 190MM versus 198MM in Q4/22. This is up 20% Y/Y and up half a percent versus Q1/19.
- Air fares have also remained strong, however, there remain concerns that this will eventually impact demand. At this juncture though, the airlines continue to point to a robust booking curve. TRZ recently reported Q1/F23 results and noted customer deposits hit a record level of $898MM, up from just $603MM at the end of F2022, which highlights the positive demand environment. For Q2/F23, the company noted that while load factors are 3% below 2019 levels, yields are 25% above 2019 levels, with the positive trends in winter looking to continue into summer 2023. We maintain that the Canadian airline industry is in the midst of a countercyclical recovery. We see AC as well-positioned given its market share in Canada.
- We continue to see significant pent-up demand to travel creating a countercyclical recovery for the Canadian airlines.
Comment by
Returns2021 on Apr 14, 2023 9:54am
LMFAO, the CIBC is starting to get it. The outlook is DISASTROUS. How is the share price doing as the market has rallied???? Below $5 is a certainty
Comment by
JuIieRichards on Apr 14, 2023 11:25am
Good to see solid information. And then hilarious to see the board troll's ignorant remarks go on and on. Talk about broke trolls.
Comment by
JuIieRichards on Apr 14, 2023 2:23pm
Forward bookings are setting new records
Comment by
JuIieRichards on Apr 14, 2023 5:08pm
And there is no pent up in demand for many quarters ahead. Society is divided into haves and have nots, and the haves are travelling all out.
Comment by
JuIieRichards on Apr 16, 2023 1:03am
Does the troll have any counter information.. numbers, analyses? . Dumb question. He is sequestered in his basement room and broke.
Comment by
JuIieRichards on Apr 17, 2023 10:35am
We continue to see significant pent-up demand to travel creating a countercyclical recovery for the Canadian airlines.