US airlines: 2020 prospects bright, but unknowns persist

US Airlines are heading into 2020 with two big uncertainties - the timing of the Boeing 737 MAX's return to service, and the country's upcoming Presidential election, which at this point no one dares to predict.

Airlines operating the Max in the US have had to pull back the aircraft's re-entry date many times as the US FAA takes great care in the process of recertifying the aircraft's flight control software MCAS (Maneuvering Characteristics Augmentation System).

The ever growing uncertainty makes predicting overall US capacity growth in 2020 challenging, and that unpredictability is an overhang for investors somewhat nervous that capacity could outstrip demand.

The Presidential election creates another level of uncertainty as the unpredictable outcome can create some weakening of consumer sentiment. For now, US consumer perception remains strong, which bodes well for US airlines heading into the new year.