Seeking Alpha

Soft outlook from Lufthansa stings airline stocks

  • A revised outlook from Lufthansa (DLAKY) is pressuring other airline stocks today.
  • Pricing competition from Middle East carriers on long hauls to and from Europe is a rising concern for Lufthansa and creating a ripple effect for other routes.
  • Decliners: Delta Air Lines (DAL) -3.6%, Alaska Air Group (ALK) -2.0%, United Continental (UAL) -3.7%, Hawaiian Holdings (HA) -2.5%, American Airlines (AAL) -2.9%.
Comments (9)
  • Brucejfern
    , contributor
    Comments (1483) | Send Message
     
    This is so funny. DAL and AAL have been reporting positives and a German airline causes this kind of hammering on US airline stocks?

     

    The difference between the investor that makes LOTS of money and those that don't is this knee-jerk shoot first and never ask the right questions before shooting behavior. The only winners are the brokers who watch trading in, trading out, and trading around making money on every trade.
    11 Jun 2014, 10:47 AM Reply Like
  • gwherrick
    , contributor
    Comment (1) | Send Message
     
    You are absolutely correct. Great day to buy more DAL
    11 Jun 2014, 11:19 AM Reply Like
  • gayle.edmondson@gmail.com
    , contributor
    Comments (15) | Send Message
     
    Used today to bolster my position in DAL, holding on HA because it is large enough. I agree with you Bruce. These days where stupidity rules are great days to add to or create a new position. DAL does get hammered from time to time as do most of the airlines which also makes them nice trading opportunities as well. Have made about 10% in my portfolio this year buying and selling DAL calls, so days like today look like opportunities.
    11 Jun 2014, 10:52 AM Reply Like
  • JosephCortes
    , contributor
    Comments (808) | Send Message
     
    Such is life.
    11 Jun 2014, 11:00 AM Reply Like
  • Jkillst11
    , contributor
    Comments (13) | Send Message
     
    I love it when good companies are down in sympathy with news from competing companies. No better opportunity to increase your position.
    11 Jun 2014, 11:09 AM Reply Like
  • User 7530821
    , contributor
    Comments (225) | Send Message
     
    I love DAL even more now...lol.
    11 Jun 2014, 11:14 AM Reply Like
  • JosephCortes
    , contributor
    Comments (808) | Send Message
     
    Why prefer to buy DAL over AAL?
    What really make it a better investment?
    11 Jun 2014, 11:46 AM Reply Like
  • gayle.edmondson@gmail.com
    , contributor
    Comments (15) | Send Message
     
    For me I think AAL is a terrific company and many say the best, but personally I owned AAL when it went down to .25 in 2011 or 2012. Haven't looked back at the stock. Thought about it a month ago, and figure now time has passed (for me). Made really good money with DAL as it goes up and down which provides me many entry points and income along the way.
    11 Jun 2014, 12:38 PM Reply Like
  • markcc
    , contributor
    Comments (1376) | Send Message
     
    Lufthansa has competition coming from more than just the airlines cited in the article. They are an old formula network carrier that is getting eaten by a growing hyper competitive discount market in Europe. The US-EU Open Skies agreement is opening up the Atlantic to competition that just was not there before from companies like Emirates, who is doubling its plane count and with a lower cost structure, allows it easy entry to new markets. The EU rules are making it easy for new EU entrants to introduce discount service throughout the continent. With carriers like Easyjet, Wizz, Norwegian, Ryanair, Turkish and others growing as fast as they can get planes, Lufthansa is losing share, and like their US brethren, can no longer dismiss the competition from the discounters. The message for our US based airlines is to make sure that they focus on cost, not ticket prices if they want to survive in the long term.
    11 Jun 2014, 02:08 PM Reply Like
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