• Are Low Oil Prices Actually Bad for Airline Investors?

    3 monthes ago - By ETF Daily News

    From Adam Levine-Weinberg : Shares of American Airlines have plunged about 17% over the past week. Other major airlines, including United Continental , Southwest Airlines , and Spirit Airlines , are sporting losses of 7% to 9%.
    AIRLINES WEEKLY STOCK PERFORMANCE, DATA BY YCHARTS .
    Keay's downgrade is premised on the belief that low oil prices are bad for airline stocks, because they encourage airlines to expand too quickly, undermining their pricing power. However, this big sell-off looks like a buying opportunity, because fuel cost savings will likely outweigh any unit revenue...
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