American Airlines Shows Us Why Airlines Are Usually A Bad Investment

Summary:

  • Airline stocks have historically been a bad investment and there are multiple reasons for this.
  • American Airlines is a prime example of the problems faced by airlines and there is little chance of this changing anytime soon.
  • Any change in outlook could be short-lived and the ghosts of the past could come back to haunt this industry again.

Delayed flight

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Premise

Airlines have baffled even the savviest investors. It is a cyclical industry and as cyclical industries go, it has had its ups and downs over the years. But even among cyclical industries, the airline industry is a black

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Data by YCharts

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Data by YCharts

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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


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