A Very Rapid’ Drop In Domestic Demand Is Hitting Airlines

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by azavio

Complement to a former post. Any jump in airlines stock price is just dancing around for now

The Travel crisis that is emerging will affect other industries that profit fromn tourism, like real estate

https://finance.yahoo.com/news/very-rapid-drop-domestic-demand-182820043.html

https://www.reddit.com/r/wallstreetbets/s/7nEvEsNjpp

https://sherwood.news/business/us-airlines-in-a-recession-southwest-ceo/

On the international front, for majors Airlines, Chinese and other Asian international tourists are crucial to their long-haul operations. Shanghai Pudong round trip to Dallas-Fort Worth is a common route that is seing drastic decrease for AAL.

A downturn in both leisure and business tourism leads to reduced hotel occupancy rates, lower room pricing, and decreased revenue, particularly in tourist-centric cities like Las Vegas, Orlando, and New York City.

Companies/stock potentially affected: Host Hotels & Resorts Inc., Park Hotels & Resorts Inc.

Tenet Healthcare (THC) – Dallas, TX maybe affcted too. They owns hospitals and medical centers, some of which attract foreign patients for medical tourism.

Carnival Corporation (CCL) – Miami, FL, world’s largest cruise line, heavily dependent on international tourists, including Chinese travelers.

Royal Caribbean Group (RCL) – Miami, FL, same as Carnival, with an even more aggressive focus on Asia-Pacific expansion, including China-based cruise itineraries.

Many Buffalo/NY small businesses rely on Canadian spending. If revenue drop, they can pay rent, if they can pay rent, landlords cant service mortage debt. More businesses will close like in covid or after covid.

Lennar Corporation (LEN) – Miami, FL, one of the largest homebuilders in the U.S has lot of Chinese buyers: Florida (and Texas) have been targets for foreign real estate investment, particularly by Chinese nationals seeking EB-5 visas or U.S. property. So real estate may be affected too, in this case, may be it will relieve pressure on prices, not sure. But for REITS (real estate investment trusts) that owns properties leased to Hotels and restaurants or Malls or international student housing that depends on international travellers or Transit/transcient business, trouble are ahead in all major US Cities.

Event Spaces & Convention Centers: A reduction in MICE (Meetings, Incentives, Conferences, Exhibitions) activities weakens demand for event spaces and the surrounding businesses that support them. ALL major hotels brand affected.

Diversified REITs: These entities, with portfolios spanning retail, hotel, and mixed-use developments in major gateway cities, face indirect impacts from the downturn in tourism and international student presence: Vornado Realty Trust (VNO), BXP, Inc. (BXP)

also, if all foreign countries keep rejecting boeing planes delivery like china, it is the whole aerospace sector that is going down with all of the small industries and SMEs that their business model feeds.

https://fortune.com/article/boeing-ceo-trump-china-tariff-trade-war-planes-economy/