Global airline stocks are reeling again as oil, war concerns push aside recovery hopes

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Global airline stocks fell again on Monday as the Ukraine-Russia headlines and the prospect for higher jet fuel prices continued to power down expectations for a full post-pandemic recovery in the summer of 2022.

Some of the notable decliners included China Southern Airlines (ZNH -5.6%), Azul (AZUL -8.6%), Gol Linhas (GOL -8.3%), China Eastern Airlines (CEA -3.3%), Volaris (VLRS -4.9%), Sun Country Airlines (SNCY -3.5%), Ryanair (RYAAY -5.7%), Allegiant Travel (ALGT -4.6%), Delta Air Lines (DAL -5.2%), American Airlines Group (AAL -3.9%), easyJet (OTCPK:EJTTF -4.7%), Air France-KLM (OTCPK:AFRAF -4.2%), Japan Airlines (OTCPK:JAPSY -7.9%), Copa Holdings (CPA -4.5%), Qantas Airways Limited (OTCPK:QABSY -5.1%), United Airlines (UAL -6.8%), JetBlue Airways (JBLU -5.2%) and International Consolidated Airlines Group (OTCPK:ICAGY -2.6%).

The market is still digesting just how far down earnings revisions for the airline sector will have to go in 2022.

Comments

[AnimeSnoopy]

Please let's everyone listen to the reality that the market has been begging us to learn for the last several decades and LET THEM FAIL.

That is the only way we will not continue to prop up and subsidize this knuckleheads industry for the next decade to come.

[vxmike]

Based on the airfares I’m seeing for domestic US travel this spring and summer they will be just fine if they’re selling tickets at those prices

[Iflyvolaris]

@vxmike That's what I am thinking as well, but I would extend it to North America. I think European and perhaps Chinese airlines may have a tougher go based on evolving travel flows.

I am personally looking to expand my stake in my favorite airline once the hype settles down.

[David/David]

@vxmike We're about to hit a bad recession. Worse than expect courtesy of the Fed unwinding of its books as well as raising rates. I doubt that there's going to be the demand come summer.

Oh, and then there's Covid--new variant should be here by May.

The airlines will survive, but their valuations are beyond stretched right here.

[vxmike]

@David/David well not everyone believes the Fed will raise rates. Besides there is an insane amount of pent-up demand and consumers still have more money than ever. You can’t un-print the Trillions, unfortunately.

I definitely wouldn’t buy the airlines now but that’s because airlines are historically a bad investment.

[Val126]

Where are now all that people who tought they are smarter than Buffett? I told you in 2020 that he can easily has the last laught.

[george the animal steele]

@Peretepradlo like a broken clock that runs on a two year cycle

[Kindly Dr Dave]

It would be interesting to see a table of the 5 of operating costs for fuel for the group above. It would indicate the degree of pain suffered by each.

[better investing]

No big surprise there. Big oil will cash in every way possible.