Investing in airline stocks isn’t for the faint-of-heart. When demand for travel goes down, airline stocks can suffer immense losses.
Not only that, but airline stocks are cyclical, meaning they move with economic ups and downs. The strongest airline companies may have enough cash reserves to weather market downturns, but many others don’t.
If the COVID-19 pandemic showed us anything, it’s this — airline companies are extremely resilient. If they can survive two years of restricted air travel, they can survive most anything.
And now that enforced lockdowns are finally lifted, airline companies could experience a much-needed resurgence. Investing in them could be a smart move.
Related: List of stocks in the TSX industrial sector
What are airline stocks?
Airline stocks are companies that provide delivery, cargo, and transportation services to consumers and businesses.
When you think of airline stocks, you might…
