Return of 737 MAX, US presidential elections create uncertainty for US airlines in 2020

    CAPA – Centre for Aviation, in a report, entitled: ‘US airlines: 2020 prospects bright, but unknowns persist’, stated (03-Jan-2020) the Boeing 737 MAX return to service and the US Presidential elections will create uncertainties for US airlines in 2020. Southwest Airlines, one of the largest US MAX operators, experienced some market share loss because of the MAX grounding, while American Airlines has expressed uncertainty over the production and delivery of some MAXs by the end of 2020. As regards the 2020 US presidential elections, Delta Air Lines CEO Ed Bastian noted there was slight pressure on consumer sentiment during the 2016 elections, which “weighed on business decisions as people were waiting to see with some clarity, what direction are the politics and our nation and our government was going”. Both the return of the 737 MAX to service and the presidential elections have the potential to impact the capacity-demand balance, but for now, US domestic demand holds strong. [more – CAPA Analysis]