Airlines report growth of the passenger flow. This means their revenue will be growing every quarter. But are they worth investing in now? What threatens airlines?
Colonial Pipeline put its work to a halt due to a hacker attack. Oil prices grew by 1.5%. Fuel shortage on the East Coast interrupted the work of airlines, and a state of emergency was declared in Florida.
On Monday and Tuesday of the one but last week of April, Coca-Cola, IBM, Johnson&Johnson, Netflix, United Airlines, and other US companies issued their quarterly reports. What were their results? Read our article.
The coronavirus COVID-19 pandemic struck the tourist industry most severely; the tourist industry, in its turn, pulled down airlines. Stocks of the world's largest airlines fell to a minimum costs and the companies started filing for bankruptcy. Passenger flow shrunk by over 80%; nowadays, airlines struggle to fill their airplanes with passengers and survive the crisis.
Today, I will reveal other aspects of risks in the sector of air transportation and give hints on how to make money on them; also, we already have the information about the income of airlines in the first quarter.
The coronavirus pandemic has made one of the hardest hits to the entire aviation industry. The stocks of many airlines have become cheaper by more than 70%. Any investor is now able to buy the stocks of any of those companies at the lowest price possible.
It has been a week since I posted my previous article but the S&P 500 stock index has managed to decline from 2800 to the low of 2475. On the whole, since February 20th, the decrease in the S&P 500 has amounted to 28%, which is the greatest decline of the index in the last 10 years. The current situation can easily be called a crisis, and its reason is not some overheated economy or a bubble in some sector but a virus.