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Buyer beware: Airline stocks are a ‘value trap,’ warns expert

January 15, 2019

Via: CNBC

Airline stocks can’t seem to catch a break.

The NYSE Arca Airline Index, which tracks U.S. and international carriers, lagged the broader market in 2018 — dropping nearly 21 percent compared with the S&P’s decline of more than 6 percent — and some of the biggest airlines are warning that 2019 might bring more bad news.

American Airlines and Delta Air Lines both finished last week in the red after each carrier cut its guidance. This comes after American Airlines fell just more than 20 percent in December, its worst month on record. It’s plummeted more than 46 percent from its January 2018 high of $59.08.

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