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September 4, 2008

Q: When is a Hurricane Good for Airline Stocks?

Filed under: Airlines, Storms, Weather — Rick Seaney @ 10:59 am

 

A: When it misses hitting the offshore oil rigs.

Sure, Hurricane Gustav badly disrupted air travel over the crazy Labor Day weekend, but just the fact that it left all that oil infrastructure in the Gulf “relatively unscathed” as Forbes put it, provided “a welcome boost to ailing airline stocks. Many shares saw double-digit jumps.” At least initially.

Good news - but even better news was that the hurricane pulled its punch somewhat as it headed to land.

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