It’s not news that airlines are struggling. The pandemic is dragging out for longer than most of us expected, and while the rollout of vaccines provides a ray of hope, a full-blown rebound for domestic flights may not get under way until this summer, if then. In the meantime, it’s dark days for what was a staple of the transportation infrastructure.
Don’t get me wrong, I’m rooting for a recovery for airlines — if for no other reason than to keep hundreds of thousands of people’s jobs intact. However, I can’t get on board the argument to buy airline stocks on the hopes of a rally later in 2021 or beyond. Zoom Video Communications (NASDAQ: ZM), Tesla (NASDAQ: TSLA), and other tech companies are the reason why.
The worst-case long-term scenario for airlines: Video conferencing while in a long-distance commute in an autonomous car. Image source: Getty Images.
