Originally Posted by prhs1989
I can't think of a good analogy, but why would you invest in any airline. The entire industry is a mess right now, so it would probably be smarter to avoid it all together.
That the industry is a mess doesn't mean you can't make money in airline stocks. Over the past year, AMR is up 200%, CAL is up 150%, LUV is up about 25%, SKYW is up about 60%, and the list goes on. Unfortunately I didn't have the foresight to invest in airline stocks a year ago, but if I could go back and do it, you better believe I would!
As
nsx indirectly alluded to, Southwest's evaporating fuel hedges are going to help the entire industry. Fares are rising across the board. More good times for airline shareholders are ahead IMHO. Not such good times for passengers who have to pay for their own tickets, though.