Business
Airline stocks are in trouble. Here are a few high scores.
Some airline stocks trade at five times expected earnings. Why is it so expensive, you might wonder. The group’s reputation for preserving capital at the moment ranks somewhere between the loser and the UK pensions manager. The U.S. airlines index is down 42% in a year, more than double what the broader U.S. market absorbs.
Add to that, there is wage and fuel inflation, and the industry is at an absolute low for both pilots and planes. But it’s possible that short-term obstacles can help prevent waste in the long-term, in the same way that rainy weather causes homicide rates to drop.