Andrew McWilliams, head of research for the Airlines, Hotels and Cruise Lines UCITS ETF (TRYP),comments on proposed ‘pay as you fly’ system being considered in Germany in the wake of surging flight cancellations (Germany pushes for ‘pay as you fly’ model | Business Travel News Europe):

“With both positive and negative impacts, it is too early to tell what the net financial impact will be. Airlines will have to alter their liquidity strategy to accommodate lost advance payments; fares may be discounted for travelers who pay in advance, lowering average fares; airlines may have a harder managing assets and personnel efficiently, due to greater uncertainty about passenger loads.

“On the positive side, early adopter airlines may gain additional bookings at the expense of non-adopters in the short term. Adopters’ administrative expenses shoul