Hey noob question here- So the airline stocks have been slashed by more than 50% and will probably go lower. Warren Buffet has been increasing his stake in Delta (good sign), and there is talk of a government bailout. So the question is- does anyone know what happens to shareholders of common stock when a bailout happens? Do their shares get affected in a negative way such as when a company files chapter 11 bankruptcy? I'm eyeing Delta and United, but given their history of bankruptcy, im gonna wait till a bailout is set. Thanks in advance
In my opinion United Airlines is pride of USA. So i think Trump administration won't let it go to bankruptcy. Even if it goes in that direction it will be mostly restructuring and at the most an quarter of negative to no-growth from here. Southwest is also good company. But do your own due diligence.
But almost all the airlines have SO much debt. I would steer clear if I were you. If you really feel this is where you want to be, go with Syynik's rec and go with LUV.
