Should I invest my money in the airline industry. It looks good in black and white (annual report)? At the same time, the stock market for airlines is volatile. Any says about Westjet, AirAsia and Easy Jet?
2006-09-08 07:29:55 · 6 answers · asked by Anonymous in Business & Finance ➔ Investing
I am talking about budget airline companies offer their stocks to public. They are doing well vs. major national carrier. It makes sense small airlines like Westjet could bring profit. I am confused.
2006-09-08 07:42:15 · update #1
Like AirAsia (2 -year old budget airlines company) has bought 14 new aircraft and offering its customers cheap fares. It doesnt make sense even the flights are fulled. Everyone knows the price of gas/fuel on the rise day by day. Are they 'borrowing' money from the public by offering the co. shares?
2006-09-08 08:02:30 · update #2
Jet Blue has little debt and potential for growth. Fuel prices have kept it down recently. As fuel gets cheaper, watch this stock grow.
The entire sector is suffering at the moment, but watch JBLU. It's nearly half off its 52 wk high and has plenty of room for growth.
2006-09-08 07:49:25 · answer #1 · answered by robertonduty 5 · 0⤊ 0⤋
I echo the previous sentiments about staying away from the airline industry as a stock investment vehicle. It is extremely volatile. There are constantly contract negotiations which leaves a negative impression on the stock price. Terrorism warnings have a negative impact on the stock price. Gas price increases also have a negative impact.
If you do insist on doing so, pick Southwest. As was previously pointed out, it is the only airline to make money in the recent past.
2006-09-08 15:26:51 · answer #2 · answered by dagon12 2 · 0⤊ 0⤋
I would stay away from airline stocks. They take a tumble on any announcement on terrorism. In addition, when consumer spending drops, they take another tumble because people will cut out travel if times get tough. They are under a myriad of contracts with labor, federal and county regulators. Stay away!
2006-09-08 08:04:45 · answer #3 · answered by Robin A. 3 · 0⤊ 0⤋
It depends on what kind of investing you want to do. If you are looking equity investments, maybe maybe not. Look for carriers with good free cash flow. If it is debt, that might be better. Debt for certain airlines is cheap right now and if they don't go under, you will do well. If they do go under, you will loose most everything.
2006-09-08 07:48:49 · answer #4 · answered by Fermat 4 · 0⤊ 0⤋
Invest in American Airlines.. I think they are about the only airline that has not filed bankruptcy and their employees still get small raises every single year
2006-09-08 07:33:15 · answer #5 · answered by Lea 4 · 0⤊ 0⤋
Good investment? I believe the only airline that has made ANY MONEY SINCE DEREGULATION is Southwest. That's right, ANY MONEY. It is the worst industry in the world. If you are going to invest your money based on your research talent, I would be prepared to lose everything you have...for your own sake and the sake of your family, please turn your investment management over to someone else....please....PLEASE...
2006-09-08 07:34:31 · answer #6 · answered by The Kid 3 · 1⤊ 1⤋