Recession Watch: The Debt Load of the Travel Industry’s Public Companies
Skift Take
When it comes to their debt, easyJet has a much more liquid position than Ryanair, while United and Delta have a lighter debt burden relatively speaking than American Airlines. In the event of a recession, debt loads would be one critical factor among many in hamstringing or contributing to a company's ability to maneuver.
Skift Research is looking to a solid growth year for the travel industry, but what if something unexpected occurs, and things get nasty?
We thought it would be interesting to look at nearly three dozen publicly traded companies, including airlines, hotels, booking sites, global distribution systems, cruise lines, and major platforms like Google and Facebook, to see which companies have the most and least debt, and which ones, in theory, are the best-positioned to deal with it in the event of a recession or big downturn.
We concede that this is an imperfect forecast of how various companies might handle their debt in a potential recession, but these debt burdens are worth noting because they would certainly be factors in companies' maneuverings.
Consider Norwegian Cruise Line Holdings CEO Frank Del Rio's take on the issue of debt and maneuverability in the event of the economy heading downward.
"I think that in a capital-intensive, somewhat cyclical business, that having le
