I'm sitting with 100 shares at 13 and waiting. (Didn't see the sell rec on SA.) But bought cuz I really like flying JB. But airlines are just too hard a game to invest in. Watching credit crisis unfold before I buy more. I think JB should be a winner. ???welshmade
I'm sitting with 100 shares at 13 and waiting. (Didn't see the sell rec on SA.) But bought cuz I really like flying JB. But airlines are just too hard a game to invest in. Watching credit crisis unfold before I buy more. I think JB should be a winner. ???welshmade I never have understood why airlines find it so difficult to make money. It's not like there is much alternative to flying and I would think the investment in equipment would create quite a wide moat. Fuel costs go up, so pass them along to the customers just like a gasoline station does. Instead they seem intent on cutting their own throats with pricing wars, hoping the other guys bleed to death before they do.As for my JBLU shares, just selling calls on them thinking they may return to life some day.
Several things are working against airlines:The mentality of the airlines is that if they don't match each other on price, they will lose the customer to the competition. That is why you see the airlines rescind any fare increase they try to take if one competitor doesn't match them.Customers are so used to paying low fares from airlines trying to fill up empty seats that a majority wait to buy until a fare sale comes along or decide not to travel. Airline travel is more discretionary than someone who has to drive to work, store, etc.There is lots of money out there that for some reason think starting an airline is a great thing (romanticism?). Why do you think there are always start-up airlines waiting in the wings that think they can do things better than current operating airlines. Heck, the Skybus founder is already talking about starting up another airline!
and too many seats chasing too few asses
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