I like to watch the stock trends of airlines, and sometimes play with them. All I can say lately is WTF. I know they are down recently, but look at the run companies like CAL and AMR have had. What is wrong with these analysts who recommend these companies. Take a look at AMR. It has more debt than assets, and lost some 600 million last year. How can the outlook for AMR be good this year. Oil is continuing to rise, they have to compete with LCC's and bankrupt carriers with lower cost structures. Then look at all the socio political risk for airlines. UBL just came out with another threatening tape, there is a possiblilty of an avian flu epidemic, and Iran is starting up its nuke program. It wouldn't take a whole lot to scare people into not flying.
Anyway I have my own thoughts on why they have risen lately, I would like to see what others think.
Anyway I have my own thoughts on why they have risen lately, I would like to see what others think.
