Dividends and Airlines looking past pandemic with eye on greener planes

Happy New Year

As the calendar has turned in is a good idea to look to those who are optimistic for the future. There are considerable challenges in the airline industry, in the author’s part of the country – the warm weather of the south is desirable. However with the pandemic, do you fly south or stay home, as companies continue with hybrid models – it is possible to work from southern climates.

In an article by Tim Hepher, Jamie Freed and Eric M Johnson of Reuters, some of the airlines are looking to buy more energy efficient planes for their fleets. When the severity of the spread of the Delta and Omicron and the next one lessens, it is expected more people will want to fly or travel to other parts of the country and the world. When the holiday public moving then business travel will tend to pick up and we will approach something that was considered normal before the pandemic.

Singapore Airlines, Air France – KLM, and Qantas are purchasing energy efficient planes for the second half of the decade or 2025.

Airbus and Boeing are sold out of the benchmark medium haul models until 2025.

Two large airline purchases are Air Lease Corp and Indigo Partners (which owns a number of airlines) ordered 300 jets at the Dubai Airshow. In the airline industry one of the variable costs is fuel, the more fuel efficient a plane is, the less fuel the plane uses and costs can be lowered all over things being equal or near equal.

Linking to dividend paying stocks, as investors you are looking to the future expecting the company to be profitable to pay dividends for you to invest or spend. Being optimistic for the future is a good thing, ensure you have metrics to see if the glass is half empty but start the new year optimistic.

There are more questions than answers, till the next time – to raising questions.

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