Airlines are struggling to convince investors to support the travel recovery despite reporting booming profits and spending billions on new planes. The MSCI index tracking global airlines is trading about 40% below pre-pandemic levels, with a fall of over 20% since July. Despite airlines ordering over 2,800 new planes this year, high fuel prices and economic fears have unnerved investors. Some Asian carriers, US airlines, and Ryanair have performed well, while Air France-KLM hit a record low. European airlines build on their post-pandemic recovery through increased airfares, but some cracks have appeared in the US market. The industry has a history of mistiming transactions, ordering planes during boom times only to arrive just as demand and yields fall.

(Source: Philip Georgiadis, Sylvia Pfeifer, Patrick Mathurin, Mercedes Ruehl and Claire Bushey - FINANCIAL TIMES. Read article here)