DLAKF - Lufthansa: Why Pure-Play Airlines Remain Uninteresting To Me
2024-02-03 02:42:54 ET
Summary
- Lufthansa's stock has declined by 2.4% while the market is up almost 29%, indicating a 30% difference.
- I do not have much interest in pure-play airline companies due to their unattractive business models and lack of catalysts for upward movement.
- Lufthansa's future outlook is uncertain, and the company's valuation does not offer much upside potential.
Dear readers/followers,
Since my last article, Lufthansa has done exactly what I expected it to - decline. The company has seen a negative 2.4% RoR while the market is up almost 29%, which makes it a 30% difference.
Seeking Alpha Lufthansa RoR (Seeking Alpha)
In this article, I mean to show you why despite the decline in the share price, I continue to have very little interest in this company - or most pure-play airlines. I do own shares in companies that own airplanes/airlines, such as Exchange Income Corp ( EIFZF ) or TUI ( TUIFF ), but I do not own any pure-play airline companies. There is a reason for this. I share Warren Buffett's conviction that airlines do not make for very appealing investments, unless you know exactly what you're getting into and what you expect from the company....
Lufthansa: Why Pure-Play Airlines Remain Uninteresting To Me