sf94127

The ATM at the Airlines

I believe consumers would understand (but not like) a surcharge for rising fuel costs. Let this cost float with the price of jet fuel at the time they make the reservation. It may be a $400 flight has a $75 fuel surcharge; so be it. Get the cost out front, transparent, and get rid of the silly nickel and dime stuff which are just surrogates for real issue of high fuel cost.

Are Airlines Stocks a Contrarian Opportunity?

Opinions on the bottom for UAUA, AMR, and LUV; assume oil will go to 150.

Are Airlines Stocks a Contrarian Opportunity?

I agree except if oil gets to $170 that could literally drive UAUA and AMR into bankruptcy. LUV will survive unless crude gets to $250, which could happen. I carry some airline stocks as a hedge against a fast oil drop.

Time to Buy Airline Stocks?

I have about 10% of my porfolio in airline stocks; this is how I'm playing my bet that crude oil will come down in the next few months.
Oil company stock is not going up anymore with crude oil; I take this as a sign of a peak. There is still risk of course and if I see a slide, I'll take the loss and get out.