Could US airline stocks begin to soar?

There has been scant reward for investing in US airlines in the past, but a new focus on shareholder returns means airline stocks could soar, explains UBP investment specialist Cédric Le Berre.

Historically, US airlines’ stock performance has been poor, at best. Valuations reflected this and to a certain extent still do, as the three airlines we own continue to trade at a discount to the S&P 500. Concerns over falling profits in European airlines also caused a recent dip in US-listed airlines. American, Delta, and United Continental each fell more than 5.5% overnight, while shares in JetBlue, Southwest, Alaska, and Allegiant also dropped. Common sense In the past, investors’ common sense caused them to trade the stocks, rather than own them. As a matter of fact, wit...