Excerpt from Barron’s quoting DataTrek co-founder Jessica Rabe:
…. “Airline stocks got overextended as investors misjudged the speed of reopening,” Jessica Rabe, co-founder of DataTrek Research, wrote in a note on Tuesday. She added that airfare pricing paints a mixed picture with prices looking strong for travel around the summer holidays and weaker for bookings further out.
“There’s a drop-off over Labor Day weekend, a little boost over Thanksgiving, but no improvement over Christmas,” she wrote.
Rabe still recommends the sector for investors with a 12- to 18-month horizon. “We remain positive …with the belief that these stocks will work as both pricing and load factors improve,” she wrote, referring to the percentage of a flight with paying passengers”….
Read the full article here on Barron’s!