Airline stocks are going to take a pounding in the USA market for he next half year at least. Probably longer.
Why?
The simple answer is "It's the economy, stupid!"...
The longer answer is there are not enough fundamentals to make airline stocks sexy. All the sectors are under pressure: Network Carriers under-performing, Regionals and Contract Carriers (Like Mesa and Republic), Even the one time darling jetBlue is cutting planed capacity as indeed is Southwest.
So Delta is hoping for a sexy quick win in its proposed merger with either Northwest or United.
I will say it again - JUST SAY NO!
The merger of Delta and Northwest is a union made in hell. DL and UA would be torture for everybody concerned except for Glenn "Gordon Gekko" Tilton.
Corn futures look good...........
No comments:
Post a Comment