5 Airline Stocks to Sell to Now

Airline Stock #1 – United Airlines (UAUA)

Does United Airlines (UAUA) really break guitars?
All kidding aside, United with its central location and old line hub and spoke system will be greatly impacted by a reduction in air travel during
a flu pandemic.

With a large international and domestic route structure, United is vulnerable to flyers across the globe traveling less in hopes of avoiding the
virus. And the timing could not be worse.

Last week United posted a $28 million second-quarter profit due to reduced costs and falling fuel prices. One could argue that a profit is a profit,
but the good news may just be a mirage as United still expects to lose $7.40 to $7.50 per share this year and $2 in 2010. And there is no mention
of a swine flu risk or inclusion of such risk in the guidance.

A nightmare stoppage of travel could sink UAUA. Owning the stock at these low prices does not compensate for the risk.

NEXT: Airline Stock #2