Wednesday, November 18, 2009

Nov18th--Airline a watch for stocks...

A new outlook for the Airline industry could set a trend in increasing the stock values of the shares
as we see a seasonal shift for the holidays to come. Airline industry relies on customers and services and the amount of service is directly proportional to the business they make. There is an early shift in the way the things are working these days. The stressed out pilots, safety of the passengers ,mishandling of the luggage and claims used to be OK with the airline industry. Now that the tables are turned, there is no scope to spend and extra dime and all the airline operators have become extremely vigilant about the expenditure they are incurring. Its been a time where they are trying to reduce the number of mishandling in every possible case.

Coming to the economy stand point of view, as viewed the world is slowly loosing its lust over the dollar and things are being viewed different. The rise in the Oil price, competition of the other airlines, operating costs of the airline have limited the leverage of the airline quarterly turn over. That being said, investors are more vigilant about the investments into the airline industry. nevertheless , one has to strongly believe that the Quickest mode of transportation is by Airways. Risks are always there but , airline operators would not like to go OUT OF BUSINESS.

Investments: Out of all the alliances of airlines, star alliance is making real good progress in setting up new trends and its considered as one of the prestigious alliances of all airlines.So any investment in star alliance would be a good bet for trading or investments. few airline industries which caught my attention are

Allegiant Travel Company

(Public, NASDAQ:ALGT)

Southwest Airlines Co.

(Public, NYSE:LUV)

AirTran Holdings, Inc.

(Public, NYSE:AAI)

JetBlue Airways Corporation

(Public, NASDAQ:JBLU)

US Airways Group, Inc.

(Public, NYSE:LCC)

have a watchful eye on these stocks. They could claim the future. Ofcourse gaints like Delta is always there.
have a nice day and Nice Hedge

1 comment: