Bloomberg Surveillance Bloomberg Surveillance TV: December 17th, 2025
10 snips
Dec 17, 2025 
Sheila Kahyaoglu, a Senior Equity Research Analyst at Jefferies, discusses the survival struggles of smaller airlines and the drivers behind consolidation in the aerospace sector. Rep. French Hill shares insights on housing reforms and efforts to lower insurance costs through deregulation. Elizabeth Economy, a Senior Fellow at the Hoover Institution, analyzes the evolving U.S.-China trade dynamics post-Busan summit, exploring China's economic policies and the cautious outlook for foreign investors in Chinese markets.
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Consolidation As Defensive Strategy
- Sheila Kahyaoglu argued consolidation is a defensive response to rising costs and tight pricing in airlines.
- She noted airlines trade at a heavy discount because high fuel and labor costs squeeze margins.
Win Back Corporate Travel
- Kahyaoglu said American Airlines can improve by regaining corporate travel share and disciplined capacity management.
- She advised that pricing needs to at least stabilize for a meaningful re-rating into 2026.
Production Gains Vs. Certification Risk
- Sheila noted Boeing increased 737 production from 25 to about 42 a month, signaling supply improvements.
- She cautioned certification for large programs like the 777X remains a key uncertainty.