Investing in US travel companies? Carnival/Delta etc

What are people’s thoughts on buying up the big US airlines and cruise companies which are down 60-85% currently? Do you think the likes of Carnival/Royal Caribbean cruises and Delta airlines for example have the resources to get through this crash or is it not worth the risk?

My thoughts are that even if one or all of the cruise duopoly fails, they would get a bailout. Then by summer 21/22 they could recover. It seems a naive way to think though so am looking to be educated by you experienced investors!


I did read that “Entities owned by Warren Buffett’s Berkshire Hathaway (ticker: BRKb) paid $45.3 million on Feb. 27 for a total of 976,507 Delta shares (DAL), an average per-share price of $46.40.” Price today is $23.54. So if you buy now you will do better than Warren Buffett. He thought $46.40 was a bargain price.


I don’t think a cruise bailout is guaranteed like the airlines would get bailed out.

Delta is in my watchlist, Boeing as well… but I will wait more few weeks to see what will happen to them related to the government help.
I’m wondering if the US government will assume part of Boeing :thinking:


If you take a look at Carnival’s income over the past 4 years, averaging just under $3B net. This is hugh, with 100k employed I don’t think any govt will let them go bk. I also don’t think they will have an issue raising debt considering their asset but it all comes down to how long this virus hold out for. I got in to Carnival a bit earlier at £27, average is currently £16 and would be holding out for now except it falls further into £5 territory