Airline stock drops on QE news

Victoria
By Victoria September 17, 2012 16:40

Airline stock drops on QE news

Airlines shares have been impacted by the news that the Federal Reserve is to issue another round of quantitative easing as the action drives up the oil price. However should QE work as intended, the unemployment rate should decrease and demand for air travel will increase, boosting airline revenue, while as the market moves up, airline stocks will move up.
Analysts have indicated that stock in US Airways and other airlines is undervalued, as many don’t predict the oil price going much higher (famous last words?).

Victoria
By Victoria September 17, 2012 16:40
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