What's going on?

The Federal Aviation Authority grounded all flights on Wednesday after a key IT system crashed.

What does this mean?

Airlines have had it tough lately, and Wednesday�s flight-canceling technological mishap is yet another example of the roadblocks � or, uh, flight blockers � they�re up against. The whole debacle just about sums up investing in the industry: see, while plenty of sectors are negatively affected by world events, airlines have a reputation for being especially vulnerable. The pandemic, for one, literally grounded the sector for an achingly long time. Then almost as soon as vacationers started lining up at the check-in desks again, sky-high fuel prices � a result of the ongoing war in Europe � sent airlines� costs heavenward. So while irrationally fearful fliers can find comfort in their pilot�s extensive training and impeccable safety record, nervous investors may be right to have their guards up.

Why should I care?

For markets: Ryanair�s in the mile-high club.
There’s one airline that’s, ahem, flying high right now: Ryanair upped its profit forecast last week. The budget Irish carrier may not have the luxury trimmings that attract comfort-seeking business executives, but in a post-pandemic world, it’s the budget-savvy traveler that’s the real prize. So while other airlines face a long taxi back to their old highs, Ryanair’s stock already has lift-off � it�s climbed 17% so far this year.

The bigger picture: Down in the debt dumps.
Mind you, this could be a well-needed lesson for airlines like Delta and American Airlines. Back in the pre-pandemic boom years, the over-confident carriers borrowed heaps of cash to fund sleek, new airplane fleets, betting that a never-ending stream of travelers would help them repay the loans. But Covid caught them unawares, and forced airlines to borrow even more just to stay afloat ��sorry, airborne. And because savvy would-be investors know those piling debts will get in the way of any lofty returns, they�re likely to take their time before climbing aboard.