Re-appraising airlines: How investor interest in carriers can take off again

Boom in low-cost names creating opportunities

clock • 3 min read

The airline sector is a challenging one for investors. It is hard to set aside the love/hate emotion of personal experience so rational investment analysis is difficult.

Now, high oil prices seem to give good reason to avoid the sector.  The oil price is up 50% over the past 12 months, helped by production quotas and supply disruptions. UK's most-shorted stocks: High street brands top the list The consensus view is even those who have hedged fuel for a period will eventually need to raise prices, which could hit passenger demand. Profits forecasts are still being downgraded. Many investors will think it less risky to wait - at least until the oil price has probably peaked. But this negative view misses the strategic shift. Not all airlines are e...

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