Travel Woes
Richard Minuk - May 12, 2023
According to Forbes, almost 90% of Americans said they plan to travel just as much or more in 2023 vs 2022. Stats are no doubt similar for us Canadians despite the terribly frustrating experience many have had at the airports throughout Covid.
I’m myself booked for Mexico but there is something new potentially grounding my plans.
A looming WestJet pilot strike may be announced in the coming days. YIKES.
With the tailwind of enormous consumer demand, we investors might think airline stocks should be reaching new heights, right?
Nope.
Blame it on lower levels of business travel, blame it on higher fuel costs, blame it on whatever you want, but out of personal frustration, this week let’s highlight airline companies and their lackluster stock performances relative to the overall Canadian and US markets.
| Stocks / ETF | YTD | 2022 | 5 year |
| Southwest | -13.2% | -21.4% | -10.5% |
| united | 20.2% | -13.9% | -7.6% |
| Air Canada | 10.6% | -8.2% | -2.4% |
| delta | 1.5% | -15.9% | -8.0% |
| jets etf (airline stocks) | -3.8% | -19.0% | -9.6% |
| XIU TSX 60 etf (Canada) | 6.8% | -6.4% | 8.7% |
| VFV S&P 500 ETF (USA) | 7.7% | -12.6% | 11.4% |
Factset May 12 2023
For the sake of their shareholders, let’s hope these companies can get organized and maybe their stocks will be ready to take-off, just like me next week.
Richard Minuk, CFA | Investment Advisor