Sonia Ruiz de Garibay (GVCGaesco) | Although a simultaneous investment recommendation for oil and airline stocks might seem a contradiction in terms, the fact they are both heavily influenced by oil prices gives them a very important element in common. Oil is an earning driver for the oil industry, while for the airlines sector it is an important costs’ element, accounting for over 20% of the total. Repsol and IAG are currently good bets.
airlines industry 2017
The airline industry will register net profit of $31.4 billion in 2017 (5.3% more than forecast in December) and revenues of $743 billion (0.9% more than the December estimate).