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Originally Posted by Onlydo2days
I hate to say this after the fact since I missed it but damn UAL was an easy one when it got down 3-4%. Airline industry in US has no competition, this won't hurt UAL much at all beyond some short-term bad PR and it was gapping down like it was Chipotle with the ecoli problem.
Not sure that's a good comparison especially since this just happened & CMG is pushing into multiple years dealing with the aftermath of their scandal. Agree it was a nice flip but a decent portion of the retrace was because DAL is reporting tomorrow morning first up for the sector, AAL was really hot too. Airlines are heavily commoditized, customers will quickly forget about that scandal when their prices get slightly cheaper than the other majors. Not to mention for some UAL is the only option for business and their reward system etc. Any effects on earnings are likely to be temporary, having said that the sector has run a ton over the past year. A market correction brings them all back down to earth.