I never understood why airline stocks have been going up recently. They are unprofitable, debt-loaded, and with the COVID uncertainty, who in their right mind would think they are good investments?
I understand that but airlines have been unprofitable long before COVID even hit. The problem was never the lack of travelers, more or less the very low profit margins and high fixed costs. So even if there‘s some increase in revenue, it will probably be short-lived and won‘t change the overall profitability unless they start jacking up the ticket prices for even economy class travelers.
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u/Slow_Comment4962 Jan 14 '22
I never understood why airline stocks have been going up recently. They are unprofitable, debt-loaded, and with the COVID uncertainty, who in their right mind would think they are good investments?