# Buy airline stocks and get rich quick



## Kauai Kid (Nov 2, 2014)

Friends were considering spending a couple weeks with us at the Maui Schooner in March to see the whales.


Coach Airfare round trip for two varies from $2,732 to $10,996 leaving March 14 and returning March 28th.   Remember that is COACH AIRFARE with new reduced seat-pitch and thinner cushions.  

Can't imagine why they changed their minds.


Sterling


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## BocaBoy (Nov 2, 2014)

Kauai Kid said:


> Friends were considering spending a couple weeks with us at the Maui Schooner in March to see the whales.
> 
> 
> Coach Airfare round trip for two varies from $2,732 to $10,996 leaving March 14 and returning March 28th.   Remember that is COACH AIRFARE with new reduced seat-pitch and thinner cushions.
> ...



I just looked at those dates. I don't know the U.S. departure city they are looking at, so I looked at DFW.  Round trip coach from DFW to OGG on those dates is $1,189 and by varying the dates a little you can get it for close to $1,000.  I saw only one flight over about $1,900.


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## Icc5 (Nov 2, 2014)

*Don't count on it*



Kauai Kid said:


> Friends were considering spending a couple weeks with us at the Maui Schooner in March to see the whales.
> 
> 
> Coach Airfare round trip for two varies from $2,732 to $10,996 leaving March 14 and returning March 28th.   Remember that is COACH AIRFARE with new reduced seat-pitch and thinner cushions.
> ...


Just because a company charges a lot or (overcharges) doesn't mean a stockholder will get a cent.  Probably just give another perk to an executive.


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## BocaBoy (Nov 2, 2014)

Icc5 said:


> Just because a company charges a lot or (overcharges) doesn't mean a stockholder will get a cent.  Probably just give another perk to an executive.



I guess you have not noticed that the airlines are in fact reporting record profits these days, and their shares have been soaring.


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## Icc5 (Nov 2, 2014)

*Oil*

Can you say oil.


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## artringwald (Nov 2, 2014)

Invest in timeshare stock so you can afford the airfare. DRI is up 43% in the past year.


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## BocaBoy (Nov 2, 2014)

Icc5 said:


> Can you say oil.



The oil price drop has accelerated the profit rise, but it started long before the recent big drop in oil prices.  The baggage and other fees are a big part of it.  But regardless of the reason, the shareholders of the airlines are benefiting greatly.


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## tompalm (Nov 3, 2014)

The majors just reported earnings a couple weeks ago and nice profits for the last quarter.  However, oil prices just started coming down in July and hit a low in October.  This quarter should be a full three months of cheap oil prices for the airlines.  I didn't think about buying the airlines until the Ebola pullback a few weeks ago and now overweight on American, Delta and United.  All the airlines are probably a good bet.  If the weather stays good through the holidays, the airlines will have blowout earnings and do really well when they report in January.  They are making money and they plan to make as much as possible and will not lower ticket prices.  Buy airline stock if there is another pullback.


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## Mister Sir (Nov 3, 2014)

This reminded me of the Richard Branson quote, "I've always said, the easiest way to become a millionaire is to start with a billion and then buy an airline."


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## Icc5 (Nov 3, 2014)

*I agree*

I agree the airlines have been doing well recently after doing bad for years.
The point I actually was trying to make is that just because a company charges high prices it doesn't always go to the bottom line and in my experience with owning stocks it also might or might not go to the stockholders.
My best example of this is with grocery stores/stocks.  We often see big price increases on what we pay for groceries yet the stocks often do nothing.  At the same time I see executive pay only go up up up.


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## Kauai Kid (Nov 3, 2014)

BocaBoy said:


> I just looked at those dates. I don't know the U.S. departure city they are looking at, so I looked at DFW.  Round trip coach from DFW to OGG on those dates is $1,189 and by varying the dates a little you can get it for close to $1,000.  I saw only one flight over about $1,900.



Kayak.com from Austin had those prices yesterday.

Sterling


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## tompalm (Nov 3, 2014)

Mister Sir said:


> This reminded me of the Richard Branson quote, "I've always said, the easiest way to become a millionaire is to start with a billion and then buy an airline."



I have watched airlines lose money for years and have always been afraid to buy stock in an airline. I am not talking about owning it long term and only holding the stock until after earnings come out in January. Oil is cheap, the fundamentals are sound, but risk is still on due to bad weather, accidents or a terriost attack. If all goes without any problems for a few months, they will make a lot of money.


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## BocaBoy (Nov 3, 2014)

tompalm said:


> I have watched airlines lose money for years and have always been afraid to buy stock in an airline. I am not talking about owning it long term and only holding the stock until after earnings come out in January. Oil is cheap, the fundamentals are sound, but risk is still on due to bad weather, accidents or a terriost attack. If all goes without any problems for a few months, they will make a lot of money.



With the big airline mergers and their high baggage and other fees, airline economics are a whole new ball game from the past.  Looking at their problems from the past is not very useful in analyzing the future.


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## WalnutBaron (Nov 3, 2014)

tompalm said:


> I have watched airlines lose money for years and have always been afraid to buy stock in an airline. I am not talking about owning it long term and only holding the stock until after earnings come out in January. Oil is cheap, the fundamentals are sound, but risk is still on due to bad weather, accidents or a terriost attack. If all goes without any problems for a few months, they will make a lot of money.



FWIW, I have owned shares of Alaska Airlines (ALK) and American Airlines (AAL) since the industry got pounded hard in October by the Ebola scare, which was a great time to buy stock. The airlines have a winning business model--at least for the near future: sinking fuel costs, enhanced revenue through junk fees, and continued consolidation. All of these make it hell for passengers (especially leisure travelers who often lack premier frequent flier status), but a genuine opportunity for investors.

FYI, AAL is up 51% since October 12 and ALK is up 31%.


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## tompalm (Nov 5, 2014)

WalnutBaron said:


> FWIW, I have owned shares of Alaska Airlines (ALK) and American Airlines (AAL) since the industry got pounded hard in October by the Ebola scare, which was a great time to buy stock. The airlines have a winning business model--at least for the near future: sinking fuel costs, enhanced revenue through junk fees, and continued consolidation. All of these make it hell for passengers (especially leisure travelers who often lack premier frequent flier status), but a genuine opportunity for investors.
> 
> FYI, AAL is up 51% since October 12 and ALK is up 31%.



What kills me is I wanted to buy American a few years ago when they came out of bankruptcy, I think it was $5 a share at the time and now above $40. But, past experience had brain washed me that airlines never make money. I worked for the Airlines, all my Navy buddies work for the majors. It was the biggest joke for years that airlines can't make money.  All of them are killing it now and are getting back all the years of losing money. Ryan Air reported a couple days ago and beat expected earnings, but what really got attention was that they said next quarter looks to be outstanding. I think January will show excellent earnings and a lot higher prices for all airlines.


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## Kauai Kid (Nov 5, 2014)

BocaBoy said:


> I just looked at those dates. I don't know the U.S. departure city they are looking at, so I looked at DFW.  Round trip coach from DFW to OGG on those dates is $1,189 and by varying the dates a little you can get it for close to $1,000.  I saw only one flight over about $1,900.



Remember I was showing the prices for two people.  Big John,a native Texan, might have serious problems fitting in a coach seat.

Sterling


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## Kauai Kid (Nov 5, 2014)

Kauai Kid said:


> Friends were considering spending a couple weeks with us at the Maui Schooner in March to see the whales.
> 
> 
> Coach Airfare round trip for two varies from $2,732 to $10,996 leaving March 14 and returning March 28th.   Remember that is COACH AIRFARE with new reduced seat-pitch and thinner cushions.
> ...



The major point I was trying to make was those obscene coach seat prices.  $10K to fly two people coach from Austin to Hawaii--give me a break.

Sterling


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## tompalm (Nov 5, 2014)

Kauai Kid said:


> The major point I was trying to make was those obscene coach seat prices.  $10K to fly two people coach from Austin to Hawaii--give me a break.
> 
> Sterling



The airlines are mean. They are not giving anyone a break, employees took pay cuts, passengers are paying more, fuel cost is lower, but they have no plan to lower the ticket price. In fact they are charging more. The airlines are lean and have merged to improve efficiency and reduce competition. So, they are lean, mean and killing it. You meant it as a joke to buy stock, but it is a smart move if you are an investor.


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## tompalm (Jan 22, 2015)

If anyone bought airline stocks a couple months ago, now would be a good time to take some profit, or at least sell half of your holdings. Earning are being reported now and Southwest was up 8.42 percent today. American is up 98 percent from the October 15th low a few months ago. American reports next week and it might go higher, but at this level it would be best to take some profit. All of this was based on oil and the price of oil is stabilizing.


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