Quote:
Originally Posted by Discuss Thrower
Why did you buy airline stock?
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several reasons:
1. Up to mid-Feb, each airline was doing just fine relative to where they are now
2. CARES funding into airline industry to keep them afloat
3. No way Govt won't continue to bail airline industry out....what are they going to do, let airlines fail? Then what....it's not like any company can just come out and buy the assets in a fire sale and resume business....
4. Once travel is permitted and fear subsides, people will be eager to get out of the home and take the trips they couldn't now. Business travel will resume as soon as humanly possible, but I believe the discount airlines will do OK too because they'll get the business travel + those itching to get away....
I think the prices today are a by-product of fear, and once we're out of this, then it will recover nicely. It's a long play to be sure, but hey, buy low / sell high right?