The big question is, is this the ideal time for us to put some faith in SkyWest (SKYW) airlines company?
To be on the safe side, the economy of the United States has proved to be quite vulnerable in the post-lockdown time and has been negatively affected by various issues. Jobless claims have been elevated and reached the highest within the last five weeks’ time. Although the rate of unemployment has been gradually declining, it is still 6% more than usual.
SKYW And US Economy
The sentiments of the consumers have been quite weak as there are mass unemployment and financial issues in every household. Additionally, stimulus check 2 is being delayed for the past few months.
Despite all these arguments, the airline industry is being optimistic about recovering along with the hopes of SkyWest being on the positive side.
Moderna and Pfizer will soon be launching their coronavirus vaccine candidates. Following this, the consumers are likely to elevate their goose sentiment. Congress is also planning to release the stimulus package that might reach the citizens within January 2021 which is another massive boost for consumers. Hence, with all this positive news, SkyWest is expecting to garner more profits in the near future.
Delta and American Airlines rely heavily on international routes. In comparison, SkyWest is in a better place with higher possibilities of domestic travel resuming in full-swing very soon.
SkyWest has over $760 liquidity amount while they lost $26 million due to the COVID-19 pandemic. SKYW shares traded at a high of -$60s. On the 1st of December, SKYW dropped to -$40s which was a massive increase as compared to $12.07.
SkyWest is expecting rapid improvements from the beginning of 2021.