Could Buying United Airlines Today Set You Up for Life?

Could investing in an airline stock set you up for life? It's an interesting question because, based on history, you'd have to be highly optimistic to even consider it. The airlines haven't traditionally generated a rate of return sufficient to cover the cost of their capital, and they've been subject to extraneous events -- such as terrorist attacks, wars, COVID-19, and even just good old-fashioned recessions -- that have challenged many airlines' ability to continue as a going concern.So what might make it different this time, and why is United Airlines (NASDAQ: UAL) worth considering? Here's the lowdown.The International Air Transport Association (IATA) clearly states in its latest global outlook report: "The global airline industry often struggles to deliver returns perceived as attractive to investors. Put another way, the return on invested capital (ROIC) has typically been lower than the weighted average cost of capital (WACC) in the airline industry." Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool