Falling Oil: 5 Airline Stocks To Buy
By Adam Levine-Weinberg:This weekend, airline executives are probably having trouble suppressing their glee over the recent drop in oil prices. However, you wouldn't know it, based on the price action in airline stocks last week. Most major airline stocks dropped by 5-10% between Thursday and Friday. United Continental (UAL) dropped by roughly 13% from its Wednesday close to its Friday close. The media blamed the selloff on Delta's (DAL) announcement that it would be cutting capacity more than expected in the fall. This was particularly bizarre, given that Delta reasserted that demand for summer travel remains strong.While the headlines out of Europe are obviously disturbing, the airlines are much better at matching capacity to demand today, relative to 2008 or 2009. In this vein, Delta's announcement should be comforting, in that it shows that the airlines are tweaking capacity proactively rather than waiting until they start losing money to cut back.Complete Story »
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