Travel and transportation-related stocks often dip after a crisis but when travelers return, so do share prices.
Airline stocks stabilized Friday, a day after the shares were pummeled following a terrorist attack in Spain during the busy summer travel season.
Shares of American Airlines Group Inc. fell 48 cents to $45.55; United Continental Holdings Inc. rose 5 cents to $64.75; Southwest Airlines Co. gained 2 cents to $53.17; and Delta Air Lines Inc. was unchanged at $47.53. The four stocks had each fallen from about 3 to 5 percent Thursday.
Cowen analyst Helane Becker said in a note to clients that travel bookings would probably slow “for a few days” after the Barcelona attack but pick up in September.
Airline stocks have slumped since mid-July over concern the carriers are diluting prices by adding seats too quickly. Becker said the pullback created a buying opportunity for investors.
Warren Buffett’s Berkshire Hathaway Inc. disclosed this week that it trimmed its airline investments. The firm’s stakes in American, Delta, United and Southwest fell by about $415 million on Thursday and $20 million on Friday. They’re still worth more than $9 billion.
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Photo Credit: An American Airlines aircraft shown on July 13, 2017. A Cowen analyst argues it's a good time to buy airline stocks after share prices fell following the attacks in Spain. American Airlines
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