The airline industry is grappling with multiple challenges, including severe weather events such as Hurricane Milton in Florida disrupting operations. Citi Managing Director Steve Trent joins to analyze airline stocks amid these headwinds.
I do wanna start on those natural disasters, specifically Hurricane Milton heading towards Florida as we speak to.And when we think about the impact of a storm, roughly speaking, rule of thumb, every 1% decline in available seat mile growth, uh translates into a a two some odd percent decline uh in pre tax earnings, all all sequel.So we saw two years ago, Delta lose three pennies per share um on the storm that hit Fort Myers you know, let's see what happens this time.
You need co branded card loyalty, uh significant premium cabin to really offset the seat, no cost challenges. I wanna get your take on uh these headlines that that talks have broken down between Boeing and the Union.So not, not looking to pin you down on, on that name specifically, but just your broader take, Steve on the ripple effects of this across your coverage universe.I mean, I think on a longer term basis there's just uh over the next couple of years, very likely to be uh a paucity of new equipment per capita.
Uh And then we think of names on the aircraft, lesser side, for instance, that maybe see some market share gains and air cap comes to mind.So I think Three Q is pretty much settled as we look into the fourth quarter.Uh I know they said that recently but since they said that we've had oil move up a bit.
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