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I do not know if Crash bought this after its earnings "disappointment" but I certainly did, when HA was about -28% off of its prior day close. Most of the problems seemed to be one-time issues related to the strong U.S. dollar and unfavorable foreign currency translation and the peculiarities of how their CEO hedges oil costs, i.e, he doesn't - at least in the conventional sense. He uses his hedging strategy to smooth out volatility in the price of fuel, not to guess where the price is going in the short term.
The really important metrics related to passenger growth and filled-to-capacity planes seemed to be intact. My hunch is that todays nearly 30% haircut is a short term issue. With energy costs projected to be well below $75 per barrel of WTI crude for most of this year, the LT outlook for any airline seems favorable.
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The really important metrics related to passenger growth and filled-to-capacity planes seemed to be intact. My hunch is that todays nearly 30% haircut is a short term issue. With energy costs projected to be well below $75 per barrel of WTI crude for most of this year, the LT outlook for any airline seems favorable.
BWTFDIK