Recently we shared a clip of A4A President and CEO Nick Calio at our annual Commercial Aviation Industry Summit discussing the importance of the U.S. airline industry to our economy. Nick talked about the more than 11 million jobs our industry supports and the $1.5 trillion in economic activity airlines generate each year, more than 5 percent of the U.S. GDP.
U.S. airlines are currently achieving something few thought possible: profitability. The industry’s newfound financial success benefits every customer, investor and community in America.
For the first time in years, airlines now have the financial resources to invest in new aircraft, expand service, improve facilities at airports and offer new in-flight amenities. Travelers are making the connection between a healthy airline industry and a better flying experience. Investors, including millions of middle-class Americans who hold private pension and retirement plans, are benefiting in the form of healthier 401(k)s and IRAs.
That’s why as part of our Summit, we conducted a “View From The Street” panel so our audience could hear first-hand what financial experts think of the U.S. airline industry. Moderator Phil LeBeau, who covers the auto and airline industries for CNBC talked with Hunter Keay, a Managing Director and Senior Analyst covering Airline and Aerospace & Defense sectors for Wolfe Research and Andrew Davis, an Associate Director of Equity Research at T. Rowe Price.
From profit margins to valuations and cash flow, both Andrew and Hunter agreed that the airlines are delivering strong results for Wall Street and Main Street alike.