5 Airline Stocks to Sell to Now

Airline Stock #4 – JetBlue Airways (JBLU)

Discount airlines will be particularly vulnerable by a protracted pandemic that keeps consumers from flying commercially. Low ticket prices require
higher volumes of traffic to support the business. Take away that volume, and the business suffers.

With a low-price strategy and point-to-point flight model, JetBlue (JBLU) made a big splash in the
industry by providing flyers with cheap, high-quality travel options. But a blip in customer service and overly aggressive expansion hurt the airline
in its push to rival fellow discounter Southwest (LUV).

The stock has been trading aggressively lower since peaking in early 2007. In the second quarter, JBLU made a profit of $20 million or seven cents
per share. More importantly, in stark contrast to the rest of the industry, the company expects to post a profit in the last half of the year based
on fare hikes and a stronger economy.

In my opinion, that seems to be a bit aggressive and does nothing to warn investors of what would transpire should the swine flu drastically cut
passenger loads. In the short term, that aggressiveness is supported by current share price. But all bets are off if a pandemic hits.

NEXT: Airline Stock #5