Americans Keep Flying High

One of my favorite industries to watch is the airline industry. Many people see flying as something done occasionally for vacations or weddings, but the American economy would not survive as we know it without air travel and freight. The industry contributes $185 billion to the economy every year and employs over half a million people; I can confidently call it a critical component of American infrastructure.

Airlines were some of the hardest hit by the Covid pandemic. Between February and April of 2020, the number of miles flown by paying passengers fell from 89.6 billion to just 3.4 billion, a drop of 96%. This obviously had a dramatic impact on the business of flying; the Global Jets Index fell by over 60% before the end of March. As the year progressed, however, the industry quickly began to claw back its losses, and the Index ended 2020 down just 30% from the high in the beginning of February. The number of miles flown reached its pre-Covid number in July 2023 and has continued to rise since:

The DIESQ model owns both Delta Air Lines, the largest domestic airline, and Boeing, the world’s largest aircraft manufacturer, both based on revenue. This way, the model’s exposure to the industry includes one manufacturer and one operator, creating more comprehensive industry coverage. Both companies play critical roles in keeping the global aviation industry in the air, and I expect them both to continue to do so.

Perhaps, because you’re an owner, you’ll smirk next time you fly a Boeing 787 operated by Delta. I certainly do. For now, enjoy the turn of the season, and don’t hesitate to get in touch if there is anything I can do for you.