Likely Reduced Prices For Oil Could Help Keep Airline Stocks Aloft

Likely Reduced Prices For Oil Could Help Keep Airline Stocks Aloft by John Dorfman, Dorfman Value Investments

Oscar Munoz, CEO of United Continental Holdings Inc. (UAL), had a heart attack in October. He came back to work in March and in April bought $1 million of UAL stock.

Munoz had lots of company. A dozen UAL executives bought shares in April. That raises the question of whether this is a good time to be in airline stocks.

It’s always a difficult question. Two of my role models in the securities business, Sir John Templeton and David Dreman, confided that they had lost money in airline stocks more often than they had made money. Financier Warren Buffett once called airline stocks...