US Airline Stocks Analysis


The airline industry has been badly hit by this bear market as thousands of airlines are grounded all around the world. Most of the airlines in the world may go bankrupt by the end of the year. It is in times like this that we find great opportunities. In 2012, American Airlines $AAL went bankrupt and then merged with another company to come out of bankruptcy. If you had invested $10 000 in American Airlines in 2022, five years later, it would have been worth over $1.6 million. These are the opportunities we are looking for. American Airlines is the largest airline in the world but they have a lot of debt. They have a negative book value and they have lots of expenses with low margins. Where's all the cash? They have been buying back shares and now they don't have any money left to repay their debt this year. Unless the stock price crashes even more, this is not a good investment. Delta Airlines $$DAL has been growing at about the same rate as American Airlines but they have a better balance sheet and is in a much better position to deal with this crisis. The best of the big US airlines is Southwest Airlines $LUV . They have the best balance sheet, the best credit rating and has been profitable for 47 consecutive years. This year, they are most probably going to lose money but over the long-term, they will recover. The problem with Southwest Airlines stocks is that there is a premium on it. United Airlines $$UAL looks better than American Airlines but worse than Southwest Airlines and Delta airline. Warren Buffett $BRK.B is investing in all these four airlines. He's most probably waiting for some consolidation to happen. The fifth largest US airline is Alaska AirGroup $$ALK . Alaska Airlines recently bought Virgin America and they have been hoarding cash by buying marketable securities instead of buying back their shares. That's why today, they are in a great financial situation with enough cash to repay not just the debts for this year but all of them. Watch the full video on YouTube: https://www.youtube.com/watch?v=GzCJuIDQPAs&list=UUPO3uUyoXSaFWG-Ldq1mqEQ You can find the whole analysis of the airline industry here: https://ishfaaqpeerally.teachable.com/courses/662813/lectures/14996960 Join my private investing group on Facebook for more: https://www.facebook.com/groups/IshfaaqInvesting/

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