Sep. 2 at 2:08 PM
$LUV Any senario which can occur benefits
$LUV
Senario 1. Oil price hike with interest rate hike.
$ULCC got insolvency. And continues eps under 0. -> chapter 11 or chapter 7
Which means
$LUV will be the cheapest airfare, which means it will have power to choose the barrier of the airfare. -> profitability hike in close future.
Senario 2. Oil price drop while interest rate hike comtinues.
$LUV Has lowest debt and have call option to get a pie which spirit has left.
$JBLU and
$ULCC will still suffer from debt.
Senario 3. Ai bubble burst interest rate drop oil drop customer spending drop
$JBLU and
$ULCC will experience chapter 7 or chapter 11
$LUV got pie.