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2 points   posted on 08/05/09
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+11.68%
 risk: conservative

Airlines Can't Make You Money, Right?


Except for LUV, airlines is a sector that most pro's make a living from bashing. They'll never make a profit they say. So what about the investor? It would be very hard to be holding a major airline stock long-term, that's a given. But what about today? Keep in mind that UAUA is up over 10% today so its easy to say I told you so. UAUA was a $40 stock last year before the energy crisis struck.
It and the rest of the airline sector certainly took a great tumble. UAUA fell all the way from a high of $40 in 2008 to a meager $3 a share as the fallout from the energy crisis reared its head.

Now, with energy prices nervously remaining in a more reasonable trading range UAUA and others are slowly making a recovery.

Who knows, some day these same airlines may actually produce a profit.

  Related to:  
UAUA UAL Corp.


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Gekko
Walter Thatcher   74%     1 point   commented 111 days ago reply

The industry as a whole has never made a nickel of profit, though LUV has pretty consistently bucked this trend. I think that the airlines are fine trades. If I had to pick an airline, I'd look at Ryan Air.


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