This stock is so undervalued! Even if oil spikes for the upcoming bombing of IRANs nuclear capability, the airlines will make lots of money. Even more capacity will be taken out of the market with some sort of AMR,DAL, and LCC merger or split up. Oil is not sustainable at these prices for too much longer. This should be in the mid 30's or higher.
sadly, oil IS sustainable at these prices and more, fear and greed and govt indifference are gonna make this a rough summer all around. ALs have been successful tacking on fuel costs, but not sure how far they can go. If a miacle happens and oil falls, i can see this shooting up too, but now i fear oil hold Als and the whole economy down.
kurt, et al, I have a question some of you could probably answer.
We all know the AL's try to cover the cost of transporting passengers, especially as the price of oil goes up. Makes sense as a business. So like Bag fee's, why don't the airlines peg/fix the cost of a ticket as if oil was at $80. Then charge an extra fee, like Bags, if oil is at $90, $100, etc?
In my mind, that does several things. First, if it were my company, it would make sure my operating expenses are covered in an on-going basis. Second, it takes the burden off the AL's from having to explain to the customer why fare's are so high. And third, it turns all the consumers into strong advocates of bringing down oil prices by also having them complain to their own Senators about what the price of oil does to each of them separately. That many more Lobbyists the Industry would have driving prices down.