Should You Invest in Airline Stocks?
Airline stocks have taken off in recent weeks, lifted by a series of positive developments in the COVID-19 vaccine race. That's an understandable reaction: The air travel industry has been devastated by the pandemic, with revenue down more than 65% from last year.
Effective coronavirus vaccines provide hope for the future, but the next few months are still going to be dismal for the carriers. Health officials, doctors, and other experts are all urging Americans to avoid traveling this holiday season, traditionally one of the busiest and most lucrative times of the year for airlines. And after laying off tens of thousands of employees in 2020, airline executives are already plotting further cost-cutting moves in 2021.
For investors, the question is: Does the prospect of COVID-19 vaccines becoming available soon mean that it's time to climb back aboard airline stocks? Or would they be better off waiting for a later flight?
Source Fool.com
