Airline stocks

[HardDrive]

I pride myself on not being a gambling person...but....airlines.

It is SO tempting to throw a few bucks on DAL/UAL just to see where it goes. Risk of losing all is high, but DAMN would it be fun to see triple your money 5 years from now.

[Bill Douglas]

I read/heard somewhere that All of the world's airlines are going to go bust by the end of May if they keep flying as much as they do with the limited passenger numbers. Sounds dramatic, but is based on something.

Please for the sake of the Ducati Supersport don't do it.

[Sooner or later]

Most likely they are going to zero.

Short em

[stomachmonkey]

When you were getting $380.00 RT from Newark to FL last week and are selling the same route for $37.00 today you are ****ed.

I'm buying into companies whose businesses are not affected by current events and are only a bargain because they got dragged down with everyone else just, because.

[HardDrive]

Sadly, what is their motivation to NOT go bust? Wipe their debts off the books and start anew.

Given the capital investment, and the technological complexity of what they do, airlines (and railroads) really are marginal businesses. Massive fixed costs, zero brand loyalty, huge exposure to....everything, from a risk perspective.

[HardDrive]

Originally Posted by stomachmonkey

I'm buying into companies whose businesses are not affected by current events and are only a bargain because they got dragged down with everyone else just, because.

I'm with ya. Already put a lot in this week.

I'm talking monopoly money size bets. But when I tell the story 10 years from now at the bar, I will increase the amounts involved by several orders of magnitude.

[McLovin]

Seems they’ll go the way GM did.
Pre-packaged govt involved bankruptcies.
You don’t want to be a shareholder when that happens.

[Bill Douglas]

Airlines. You hear their profit for the year, 500 million, and you think that's good.

But it must be about 0.01% of their turnover. it's a very fine line to walk. then along comes the unexpected...

[KNS]

The airlines are in trouble and no doubt need help.

However, it's been so good, with profits so high, only a short time ago, American Airlines CEO Doug Parker proclaimed "I don't think we're ever going to lose money again"

While raking in huge profits in recent years (nickel and diming the flying public), the airline lobbying group Airlines 4 America have asked for $29 billion in immediate grants, $29 billion in unsecured. zero interest loans and excise tax relief through the end of 2021 because of the recent crisis.

Really!?!

Thankfully the Trump Administration is considering $50 billion in secured loans only. I hope he follows through in this manner.

[MBAtarga]

They don't have to fly any planes to make money - all they've got to do is charge baggage fees!

[Seahawk]

Originally Posted by HardDrive

I'm talking monopoly money size bets. But when I tell the story 10 years from now at the bar, I will increase the amounts involved by several orders of magnitude.

Beautiful.

Airlines are in a scramble to remain solvent - they operate on very thin margins in normal times.

I know a lot of airline pilots nearing mandatory retirement that are very, very concerned.

[Cajundaddy]

What would Warren Buffett do? He is heavily invested in airline stocks.