Is it likely to go up
Generally, for airlines going up is optional, but once up coming down is compulsory. That's why their wage bill is so high - so their employees can be very highly trained to manage the coming down bit safely in one piece.
:-)
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Joannaturkel
6 comments
timarr
Generally, for airlines going up is optional, but once up coming down is compulsory.
Airlines tend to be a bit volatile. Up and down all the time ...
timarr
William K
After the terrorist attack on the Twin Towers on 9/11, the price of airline shares plummeted because 'nobody was ever going to fly again'. Some traders realised that people would fly again and bought at half price. They made handsome profits when, after about 9 months, the airline share prices returned to previous levels.
I have absolutely no idea what will happen to the share price of LUV. Since May 15th 2020 the share price has doubled, so I'd guess a return to normal flying behaviour has already been priced in. The recent price dip of 10% could represent a buying opportunity if it reflects the current market volatility.
It's worth remembering that even Warren Buffett has lost money by investing in airlines.
