Bloomberg Surveillance: Airline Industry Confidence | Bloomberg Podcasts

Helane Becker, TD Cowen Sr. Research Analyst, remains confident in the airline industry despite the recent Boeing inflight safety incident. () Lori Calvasina, RBC Capital Markets Head of US Equity Strategy, says sentiments around the equity market got carried away at the end of 2023 (). Claudia Sahm, Sahm Consulting Founder & Bloomberg Opinion Writer, says December's jobs data points to a healthy labor market. Isaac Boltansky, BTIG Director of Policy Research, discusses Congress' agreement on a spendingcap deal as well as Defense Secretary Lloyd Austin's unannounced stay in the hospital (). Barton Crockett, Rosenblatt Securities Managing Director, details the reasons behind his firm's neutral outlook on Apple () this year.

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Full Transcript:

This is the Bloomberg Surveillance Podcast. I'm Tom Keane, along with Jonathan Farrow and Lisa Abramowitz. Join us each day for insight from the best an economics, geopolitics, finance and investment. Subscribe to Bloomberg Surveillance on demand on Apple, Spotify and anywhere you get your podcasts, and always on Bloomberg dot Com, the Bloomberg Terminal, and the Bloomberg Business app. Helene Becker joins now senior research analyst at TD Cowen, and we're thrilled that she could be with us today. Helene, January twenty second. I guess we get an earnings report from United, the others will lined up. What is their urgency to act, not so much off the Boeing accident, but their urgency to act because of the topsy turvy markets they're in now. I think that we have a situation where we're expecting, or we saw fourth quarter traffic was pretty good. The further we get away from twenty twenty, the more we'll see managed corporate travel come back. I think the trip where you have maybe a one day trip isn't coming back anytime soon. I feel like it's a lot like after nine to eleven tom when the really short haul trips went away, and we expect that to continue really now. But the longer haul trips. People need to get out, they need to see their clients. We've been talking about this for about a year now and we're seeing that. We're seeing that increase in managed travel, and we think that we'll continue into the rest of this year. With the Boeing accident, with the rivets, the fasteners, whatever, we're going to see in the coming weeks of that analysis, even months, I should say, of that analysis, what does it mean for the dynamic of refleeting A word I discovered last week. I think Helene Becker, you know, refleeting is going out and buying the bright, shiny new thing accelerated. Yeah, well yes, and no American did their refleeting in the last decade, so they're on the downside of that. United is doing it now and into twenty thirty two. Delta is in the middle of it. But Delta has a different and Southwest actually have different viewpoints on the way they refleet. They kind of spend about ten percent revenue on capex, somewhere between eight and ten percent every year, so they're continually refleeting, so we view that fairly favorably. I don't think anything changes. There's a lot of pressure on the industry to lower their carbon footprint. I know aviation only makes up two percent of total transportation carbon, but others are doing the whole reduction carbon faster, so aviation over time will become a bigger percentage of it. So there's a lot of pressure to fly young are more fully efficient aircraft oleane. I can't get past this comment from George ferguson words you never want to hear, when he basically came out and said it's not as safe as it was before the pandemic, talking about the safety of flying at a time when we did just have this incident with Alaska Airlines, also the incident that we saw in Japan, Questions around the competency and staffing levels at some of the agencies. Are you concerned? Do you feel like that is an accurate statement that it is not as safe to fly today as pre pandemic. No, no, no, I disagree with that completely. The fact that there were no casualties on the japan Air A three thirty is hugely significant. They were able to evacuate that entire aircraft without any incident, with half the doors being half the emergency doors being unusable because of fire. So I think that's one thing to consider. I think from an aviation perspective and a safety perspect that every time there's an...