Economist Podcasts Flight attendance: airlines after the pandemic
Jul 13, 2021
Simon Wright, The Economist's industry editor, discusses the airline industry's turbulent recovery post-pandemic. He dives into which airlines are more likely to thrive, weighing long-haul versus short-haul and no-frills versus luxurious carriers. The conversation also touches on the surge of unruly passengers and contrasting financial fates of airlines like Delta and EasyJet. Additionally, Wright sheds light on the cultural implications of increased Latin American migration to Mexico and the rejuvenation of traditional Japanese public bathhouses.
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Airline Industry Outlook
- Airlines face a challenging recovery, needing restructuring and a low-cost base to survive.
- Government bailouts, while preventing immediate collapse, hinder necessary restructuring and long-term profitability.
Government Bailouts and Airlines
- Government intervention in the airline industry is common, often driven by national pride and job preservation.
- However, bailouts can create obstacles to necessary restructuring and long-term viability.
Domestic Travel Advantage
- Airlines with large domestic markets, like those in the US and China, are recovering faster.
- This is partly due to quicker rebounds in domestic travel and access to government loans.