Was the impetus of this rally the beginning of that decade run that I spoke of a couple of years ago?
Most airline stocks have hiked various fees in the past few years to combat higher fuel (jetfuel) costs. Despite oil and jetfuel coming down considerably since their highs, all airlines companies havn't removed any of these fees, allowing them to grow their margins. Whats more, with recent security concerns, airline companies are set to create new fees which are probably going to be enforced for years. With oil most likely to flirt between $60-$100 for the next decade, the airline industry could generate some handsome returns in thsi new decade.
I wouldn't buy now, but on pullbacks, it makes sense or a long term investment.
Quote:
Originally Posted by bigbull  Living in joy. Hit the low $30's, picked a few % points and covered. Looking for stabilization before that decade investment.
|
maybe if inflation runs 15-20% annually. IMO airlines could possibly be one of the worst long term buy-and-hold possible.. even with decent hedging at some point fuel costs are going to cripple this sector permanently. 
