Airline stocks

June 17, 2022

Lufthansa Group, Air France KLM, American Airlines…

Investments case

Massive global supply chain crisis. In the short term, the capacity of sea freight cannot be increased, this requires a lead time (and high investments). Conventional airlines are pushing their cargo capacities extremely. It is even rumored that it is worth flying a passenger plane empty only with cargo (belly cargo).

The major shipping companies are investing their profits in air freight. For example, the world’s third-largest shipping company, the French CMA CGM, has just acquired nine percent of the airline Air France-KLM to become its anchor shareholder. Market leader Maersk, in turn, has founded its own company, Maersk Air Cargo. Hapag-Lloyd’s largest shareholder, Mr. Kühne is now Lufthansa’s second largest shareholder.

Statistics that support my Investment case

Problem: Private investors cannot trade airlines that only specialize in cargo. However, the upside potential and margin increases are likely to be large for passenger airlines.

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