Are airline stocks at their lowest?

S

suhaibprofservices

A follow up question, is it worth to purchase these stocks for future price appreciation, or shall I wait till we have enough favorable signals that the prices are in upward trend...
 
They’re not at their lowest because several of them declared bankruptcy in the past, with shares dropping to $0. They later declared new IPOs and issued new shares.
Since it worked for them in the past, they may do this again.
 
When the airlines got the bailout from the government this spring, one condition was that the airlines could not layoff any employees before Sept 30th. Two days ago Delta announced that they would be laying off 17,000 employees in October. Three weeks ago United announced they would be laying off 36,000 workers in October.

The airlines don't believe that their business is coming back any time soon. Why do you?
 
Some famous investor said that the best thing that could have happened for investors, was if someone had shot the Wright brothers out of the air.

Most airlineinvestors have lost money. And most will.

Governments and unions are too involved, and most airlines are still operating just because some politician do have too little respect for taxpayers money to stop throwing it after the airlines.

And that government stupidity makes it harder for the industry as a whole to compete. Not only are you running a low margin business with high fixed expenses, but half of your competitors are living of subsidies.

So stay away. Find something that you can make money on, if you want to invest.
 
El Trado said:
Some famous investor said that the best thing that could have happened for investors, was if someone had shot the Wright brothers out of the air.

Most airlineinvestors have lost money. And most will.

Governments and unions are too involved, and most airlines are still operating just because some politician do have too little respect for taxpayers money to stop throwing it after the airlines.

And that government stupidity makes it harder for the industry as a whole to compete. Not only are you running a low margin business with high fixed expenses, but half of your competitors are living of subsidies.

So stay away. Find something that you can make money on, if you want to invest.
More...

No one saw Corona coming. Up until then it was a whole new ballgame. They were printing cash. Huge advances in technology enabled them to evaluate every penny across every aspect of the operations.

Corona will lose in the end. The bottom may not be in yet, but air travel is not going away, just like home purchases didn't die in 2008.

I like DAL. I like the CEO. If it ever hits $15.... mortgage your mom's teeth.
 
vanzandt said:
No one saw Corona coming. Up until then it was a whole new ballgame. They were printing cash. Huge advances in technology enabled them to evaluate every penny across every aspect of the operations.

Corona will lose in the end. The bottom may not be in yet, but air travel is not going away, just like home purchases didn't die in 2008.

I like DAL. I like the CEO. If it ever hits $15.... mortgage your mom's teeth.
More...

Lol. Then when you sell at a profit you can buy her some gold grills.
 
vanzandt said:
No one saw Corona coming. Up until then it was a whole new ballgame. They were printing cash. Huge advances in technology enabled them to evaluate every penny across every aspect of the operations.

Corona will lose in the end. The bottom may not be in yet, but air travel is not going away, just like home purchases didn't die in 2008.

I like DAL. I like the CEO. If it ever hits $15.... mortgage your mom's teeth.
More...

They earned because consolidation allowed them to take capacity out of the market and raise prices.
 
You must log in or register to reply here.
Back
Top