Investing in airlines for long term

📊 Investing
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Hi everyone,

I would like to invest in airlines and aerospace companies and also resorts, cruise tour agencies and travel agencies. I created a pie of all that but I didn’t fund it yet.
I know that this is not going to see any growth in the short term, but I am considering it for a long term (over 10 years).
Any advice or thoughts regarding that? Thanks!

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I don’t particularly like airlines themselves regardless of covid or not, they are very much cyclical. But out of all airlines Delta is my favourite, simply because they provide maintenance facilities to almost every airline in the world, hence have a unique position.

I also have been continuously buying Lockheed Martin for over a decade now, decent growth and stable dividends. Other than these I don’t have much insight.

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Lufthansa i think is the most stable air france and i ag also look good for a bounce back and the us long haulers have plenty of profit in them for us as long as they don’t go broke. I’ve put my money on IG and sold lufthunsa for profit

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I can understand someone that speculates on the return to normality. What I don’t understand is investing in industries with high competition, offering ‘commodity’ products.

Think about it. There is and there will be vaccine shortage for the so called ‘First World’. Noone knows if and when there will be a return to normality soon for the rest of the world. Airlines will suffer for a long time. There will be bankruptcies.

There are a ton of opportunities in the stock market. Tech, Value, everything. I would look elsewhere.

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im also invested in pubs restraunts cruise liners American banks and oil. i don’t like tech they are going to come in for a lot of kicking. hated by both democrats and republicans so big they can block a president and ruin elections. i sense breakups tax rises ect are on the way. im also concerned i will miss the moves if i am not in these markets the prices are not trading on fundementals and the price will have recovered long before the first plane takes off

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Curious as to what pubs and restaurants?

I have a pie with cruise and airlines but I wouldn’t mind adding in a hotel or casino or pub chain.

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Mitchel and butlers and J D Weatherspoon’s. im thinking thats about as high end as i want to go. business lunches are going to fall by the way side and normal people will not be flooding Michelin stars for a night out. they might be willing to go out for a nice steak tho at miller and carter and all will be out at Weatherspoon’s for cheap pints with friends 100%. also taking a punt on Cineworld 64p a share was 1.80 before the crash no rights issues done and acquired several other chains throughout the world. im thinking with james bond and a few other pieces of Hollywood trash people will go out to be disappointed at least once and there is potential to double my money roughly. small holding right now and the second i get a whiff of restrictions ending im going in with 1k

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I was considering JD Weatherspoons myself. If there is one chain that can survive, it will be that. I might revisit that and take a look.

I dropped Cineworld though. I think the glory days of cinema in general have somewhat passed. Younger people are more into video games, and streaming services have kicked off in a big way. It’ll be a long time before they recover I reckon.

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I think it will be quite a surprise just how quickly everything kicks back off again, people are tired of lockdowns and will be desperate for things to go back to normal.

Stay cations will be big this year and next, so I would say anything “normal” will rocket once the lockdowns are lifted or become more manageable.

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Mitchel and butlers as well, its overlooked but they own toby carvery all bar one miller and carter and have better growth potential then Wetherspoons. i am going for both. cineworld are a short term play

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I looked at JD Weatherspoons mid last year, but I seem to remember that they had a lot of debt, which makes them very risky. Have you looked into it?

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Haven’t looked into it yet but I must. That debt does sound worrying though.

I’m also after cutting back on a few airlines I had invested in for the recovery rally after doing more research.

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Let me know what you think :slight_smile:.

I think the debt is from previous rapid expansion, so it might bounce back. The reason I was interested in the company is because they offer “cheap” food/drink which should do better in a recession than the average pub. I was just put off by the debt.