Originally Posted by
EdmFlyBoi
United, Delta, and American all expect to be profitable this year. AC's first quarter will be very interesting - seems that forward bookings are very strong based on limited availability and prices. It is trading about $24 and the average price target is around $30. Certainly seems positive. Good time to buy shares.
Personally I would like to see what their revenue from Business Class is before I invest and how it compares to pre-COVID. That is where all the profits are made in the airlines. Economy class revenue almost acts as a loss-leader....note I said almost, no flaming please,lol.
Another concern is how they hedged fuel prices, I recall that is the third or second largest expense.
Thirdly these high and fast climbs in oil prices (look at 2008) usually precede recessions....people will spend/travel less.
Buyer beware...