Trying to understand the market right now guys but can figure it out.
Most stocks seem to be tanking, thanks to the stimulus deal hanging.
Also second wave scare is causing aex lse and Dax to tank, but I’m noticing airline stocks soaring 5 percent a day.
To think KLM is up over 10 percent in the last week. Airbus too.
Then you have the stay home stocks are also plummeting which flourished when pandemic started. Left is right right is left…
Can anyone give me some insight on what the heck is going on? I’m stumped.
I stayed away from airlines after the pandemic but I’m guessing here, could it be some of the airlines are getting loans to help bail them out and this is reflecting on the market?
I thought that too but I scoured the net for news about being bailed out.
Didn’t find a lot. Klm and Lufthansa got bail out loans back in June. But not a lot since.
If other airlines get a bailout, it certainly shouldn’t reflect on the entire airline industry at a 5 percent hike? I mean yeah there is some impact like when snap chat soared, so did other online social media stocks like Pinterest and Twitter, but come on… airline? Lockdowns? Second wave…hello?
If i can’t understand what’s driving the market , maybe I should step out of it
That’s your choice but hang on someone with more knowledge will surely come along and advise.
Also KLM fly freight as well so some of that my be the cause of the rise and who knows what other sidelines they have.
As for airbus, they too may be getting orders for parts or some of the Arab airlines may be ordering.
It’s not an area I know about but my observations are that long term investors believe/hope the worst is behind the sector. Continued growth in airline travel both in terms of numbers and open destinations are increasing across the globe. The protocols in place seem to be strong enough to enable more activity should the worst happen again across the world.
Adding to the above, again I’m just guessing, I don’t think Holland is hit to badly with the pandemic so its possible some of KLM’s domestic flights are paying the way so to speak.
Holland and this part of Europe is actually going through renewed lockdown rules because they are trying to mitigate a second wave. Which is mainly why aex and Dax are tanking (I think)
My post above is more of a generic around the board observation, not specific to KLM. Just the airline industry.
@Mobops sort of makes sense. Like they are not panicking as much as they did the first time. Hmm intersting take.
Well you know more than me about Holland’s pandemic, it was just something I read a while ago.
I’ve worked at an airport for over 33 years and in that time I’ve seen many airlines come and go, some of them seemed well established too.
Also after 9/11 a lot of US airlines struggled for a long time to get back flying again, in fact just before the pandemic I saw one US airline change it’s strategy, it got rid of it’s larger aircraft and started flying short haul flights instead, they found it more profitable than having large long haul aircraft flying half empty.
This is the reason why a strategy is needed for investing or trading. Sometimes the market behaves in ways that defy logic and also hard to figure out. One reason that may explain the movement of the market is that about 80% of trades are now being done by trading bots that use algorithms for shorting and buying stock when certain technical analysis conditions are met. The only thing that you can do is to ignore all the noise and stick with your game plan.
The OP also mentioned Airbus, well not long ago the Boeing 747 ended it’s flying career, and it seems the Airbus A350 has taken it’s place.
Also the Airbus A380 turned out to be a white elephant pardon the pun and that too is being replaced by the A350, so this could be the reason why Airbus has picked up a bit.
Thanks @Col1948 and @TsotFin
I’ll do some more research and post back.
I know Airbus and Boeing are trying to stay afloat by losing its staff. Airbus is also doing some stuff with a new type of greener airplane… this could be.
Yes isn’t it some kind of hybrid electric engine, it started off as a concept aircraft but looks like they are looking at going ahead with it.
It’s an 80 seater that burns 50% less fuel, so this could influence more airlines to to buy.
I did a quick search on T212, I typed ‘AIR’ in the search and it threw up a list as usual but I noticed a lot of airlines in the list and they all seemed to be on the rise, mainly US airlines, that was interesting.
Exactly. Which is what I can’t work out. Corona cases on the rise worldwide, yet the business hit worst in the beginning seems to be doing well in the second wave
Airbus stock rose 5.6 percent in value on Friday, after the airline company allegedly asked suppliers to prepare for a possible increase in production of its A320 aircraft, with the company citing an increase of 18 percent for the second half of 2021.
Well you may or may not know the A320 is a short/medium haul aircraft, so that is like what I said earlier, some airlines a ditching the large long range aircraft and turning to doing domestic and shorter routes, plus they are more fuel economical.
I think the A320 is a good competitor for the Boeing 737, I don’t know the cost difference though.
Had another thought, there are some airfields that can’t handle large aircraft, I mean for landing and takeoff plus parking space, so again the smaller types can fly to those destinations.
