Originally Posted by
mikeybycrikey
I know that the SP is about 20% from the recent highs of about $3.00 but this thread seems to be turning into an AIR fan club rather than a group of rational investors.
AIR might be a well run business but with large recent drops in world markets, falling oil prices making competition more likely (and the usual airline competition strategy of a price war), increasing likelihood of a NZ recession thanks to the dairy rockstar falling off a cliff, etc, etc
Airlines are a low-margin, high-risk business with very high running costs. No matter how well-run an airline is, it is going to be a cyclical business simply because of the low margins: if customers fall by a little (perhaps thanks a recession), profits are going to drop by a lot.
I'm still holding but the lower the price goes, the more I wonder if there really are rocky times ahead and if I've made the wrong choice by not selling.