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Airlines Reaching Excessive Altitude

ByTim Knight
Published 06/05/2020, 01:23 PM
Updated 07/09/2023, 06:31 AM

The airlines have been going absolutely ape lately. American Airlines (NASDAQ:AAL) doubled in price in the span of three weeks. (Incredible, yes?) Take a look at these three examples of larger passenger airlines. You can see the similarities.

American Airlines

Alaska Airlines

United Airlines

In the above graphs, there is still room between present price levels and the horizontal marking the major price gap. However, I’d like to note that the Transportation sector in general (below, the $TRAN) is awfully close to a mountain range of overhead supply. Those who gambled on the airlines in recent weeks have made out like bandits, but I think the easy money has been made.

Dow Transports

Latest comments

I think there’s going to be a Monday Pop in airline before a dip.
Check out the Brazilian airline AZUL. They are still about a month behind the major US airlines with far more room to run up. I am up 100% already and their current price is still 350% below its pre Coronavirus levels.Before Coronavirus they had tripled their share price from $15 to $43 in the 2 years leading up to Coronavirus in a steady upward angle.
how do you think AZUL will fare this upcoming week?
 Hmmm honestly it could go either way. I think it will head up around $15.50 personally, but thats a best guess and it could just as easily consolidate for a week or 2. But it has had extreme volume and been on a run so personally im hoping the run continues.
Breaks out about 14.16 to fill a gap down at 18
You and I were born to sit, stand, and walk. (not fly, float, OR drive)
Oooo my name is tim knight and i hope my airline puts work out
and hear guys we have a 🐻
completely wrong chum. the DOW lives in the future. rhe airlines are roaring back for a reason. they are still 40% below. lots of upward room
so, on the contrary, if the transportation index (including train, road, etc) is higher that means, on the contrary, that that the airlines companies are under priced
Maybe everything except airlines...
Or maybe not. Maybe Covid crisis was an exception and trend ignore this valley
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