Falling Oil Prices Could Benefit Airline Stocks

The price of crude oil began to fall in October and hit the $50 per barrel mark in late November. ETF Trends writes that lower oil prices could be a tailwind for airline stocks, since fuel is one of their largest operating expenses. Many analysts are positive about the industry’s potential growth and have predicted … Continued

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Southwest Airlines Outperforms Expectations in the Third Quarter

Southwest Airlines Outperforms Expectations in the Third Quarter

Southwest Airlines (LUV) had a profitable third quarter, increasing its net income to $618 million from the previous quarter’s $528 million, according to MarketWatch. Although the carrier’s stock indicated down around 0.5 percent in premarket trade, it has actually grown 4.4 percent in the three months ended in September 30. Passenger revenue yield rose 2.3 … Continued

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Airlines Rose in September Despite Slowing Inflation

Airlines Rose in September Despite Slowing Inflation

U.S. consumer prices rose 2.3 percent year-over-year in September, which was down from 2.7 percent in August, according to Zacks. This was the lowest inflation rate in seven months. However, some areas of the market did experience an increase in inflation. The cost of flying, for instance, rose in September according to Zacks. While higher … Continued

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Supportive Factors for the Airlines Industry

Supportive Factors for the Airlines Industry

During a recent webcast titled “Your One-Way Ticket to Investing in Major Airlines,” U.S. Global Investors CEO Frank Holmes and ETF Trends editor Tom Lydon discussed various factors that could impact the airlines industry in coming months. At the time of the webcast, the airlines industry was expected to have $33.8 billion in net profits … Continued

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Airlines Bolstered By Decreased Capacity & Oil Prices

Projections for the number of seats offered to airline passengers came down in August, helping bolster sentiment according to the Wall Street Journal. Investors had been concerned that offering too many seats would lead to many remaining unfilled, potentially resulting in decreased profits and lower ticket prices. In addition to these updated projections, airlines benefited … Continued

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Berkshire Hathaway’s Increasing Stake in Delta & Southwest

During the second quarter, Berkshire Hathaway increased its stake in Delta Airlines (DAL) and Southwest Airlines (LUV), while decreasing its holdings in American Airlines (AAL) and United Continental Holdings (UAL). While the company stated that these moves “were a response to the 10% limitation” rather than a reflection of its views on the individual securities, … Continued

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