Going with Boeing Despite their Industry Slowing

Coronavirus pushed global travel to a rapid halt. Airlines, a relatively delicate industry, were all enjoying a great year going into the pandemic. Revenues were growing beyond historic highs, fleets were expanding, and profitability was a safe expectation. Low oil prices only added to bullish sentiment with lower cost inputs. Fast forward to this week, and the conversation instead features speculation over airline bankruptcies even after billions has been handed out in federal aid. Quite the change.

All ancillary travel industries: hotels, casinos, cruise ships, rental car companies, travel agencies and more have felt similar pain in disappearing demand and massive stock drops. This could certainly continue, as most of us have little experience measuring a pandemic's effect on global movement. For shorter-term investors, it is anyone's guess as to how travel demand recovers in the coming months. We have small signs of improvement, but none large enough to make me confident. Picking that elusive bottom is not a game I want to play.

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Source Fool.com