🛫 The big airline comeback
![_Didn't miss this part [MediaProduction/E+ via GettyImages]_](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/wdTEJWlpjpCKb1bByIiD6_1_GettyImages-117145111.jpg)
Hey Snackers,
Sometimes you need Tide to Go, and sometimes you need Tide to Go out of this earth. Tide has partnered with NASA to create detergent for astronauts. Its mission: save water while crushing spacesuit stench.
The techy Nasdaq index closed at a record high yesterday.
Airlines' Comeback: complete with cancellations, delays, and rising fares
It's a party in the TSA... The number of people passing through US airport checkpoints is back to 75% of 2019 levels, the highest since pre-lockdowns. A year ago, they were barely at 25% of pre-pandemic levels. Airlines are enjoying a travel comeback as Americans get vaccinated — but travelers are getting a side of problems along with their roasted peanuts.
Precheck won't help you... when the pilot is MIA. Airlines are dealing with a shortage of pilots and airport workers. Now that demand is back, airlines can't flip the pilot switch so quickly. Pilots who were furloughed or took leaves of absence during the pandemic have to be retrained — so do other workers, including those who check planes. The shortage is magnified when bad weather and other disruptions come up. That's resulted in:
- Delays: Nearly 10K flights were delayed in the US on Sunday. Southwest had the most delays, with 30% of flights running late.
- Cancellations: American Airlines had significant cancellations on Sunday, and proactively canceled 1K flights set for July.
Prepare for bailout backlash... Besides the pilot panic, airlines are enjoying their comeback. And now they're raising prices: flight prices jumped 7% in May from April, and were up 24% from May of last year. Consumers are angry about the cancellations, delays, and higher prices. But they could be angriest when they remember that airlines got a $50B bailout from taxpayers. Politicians sense public support for imposing additional costs on bailout recipients. That could include forcing airlines to keep flight schedules they say they can’t maintain, or raising wages.
Blackstone drops $6B in a bet on the hot housing market — but it could cool
Loving the marble countertops... Blackstone is a major investment firm, but it also knows a thing or two about landlord-ing: it owns $378B worth of real estate, including Chicago's Willis Tower and Vegas' MGM Grand. Now it's splurging on single-family homes. Blackstone is dropping $6B to buy Home Partners of America, a company that buys and rents 17K+ homes. Home Partners also offers tenants a chance to buy their rental. ICYMI: home-buying is trending.
Some like it hot... Housing market, style. Last year, US home sales soared at their fastest pace in 14 years. Fueling the wild demand: mortgages are cheaper thanks to lower interest rates, and remote/flexible work is allowing people to move to the 'burbs. Recently, that's led to:
Blackstone's investment shows confidence... in the continued rise of the housing market. While sales are slowing, the market is still red-hot — and home-lennials are expected to continue fueling growth for years to come. But a surge could price out regular families, while driving up rent prices (higher rent = great for Blackstone). A number of factors could cool the housing market's rise, including interest rate fears, inflation, and rising prices.
What else we’re Snackin’
- McLoyal: McDonald’s will launch its first-ever US loyalty program nationwide in July. It's trying to keep the digital customers it gained during the pandemic.
- Floofy: Pet supplies deliverer Chewy could post its first net profit this year as it expands with fresh food and prescriptions.
- Zond: Amazon’s planned purchase of MGM is reportedly facing FTC scrutiny, as Big Tech critic Lina Khan takes the helm.
- CheckedIn: US airports are set to receive $8B in government grants to help pay bills as travel recovers.
- Corona: Dr. Fauci said the highly contagious delta variant is the “greatest threat” to the US' efforts to crush Covid.
Wednesday
- Earnings expected from KB Home, IHS Markit, and Winnebago
Authors of this Snacks own shares of: Amazon
ID: 1695963