Home » sin stocks » Are Airline Stocks The New Sin Stocks? (UAL, AAL)

Sin stocks. We tend to think of them as taboo stocks for stuff that is illegal, immoral, or questionable. But even that definition is not perfect.

After all, alcohol sin stocks aren’t really that bad, are they? And we’ve argued elsewhere that payday loan companies probably SHOULD be sin stocks because of their usurious interest rates that prey on lower income earners.

But there’s a new vertical of stocks that seem to be moving toward “sin stock” status – airlines.

I mean… how much more can you possibly jack up prices AND piss off customers? But that’s exactly what airlines are doing.

A couple of weeks ago, United Continental (UAL) infamously called in airport security to physical remove a customer off the plane. And just the other day, American Airlines (AAL) took some heat when one of their employees picked a fight with a customer who had come to the defense of another customer.

And anyone who has ever flown on a plane knows that these aren’t really outliers. They’re just extreme versions of the daily horror that plays out for passengers.

  • High prices
  • Excessive fees
  • Petty and obtuse rules
  • Overbookings
  • Unpredictable schedules
  • Diminishing service
  • Losing or even destroying luggage
  • Changes to bookings with little or no remuneration
  • And this…

The most recent news from United…

Not to be outdone, American Airlines did this…

And let’s not forget this gem…

Make no mistake. No airline is free from this kind of controversy. Airlines seem to forget that the customer is the one that pays the bills.

The time is right for a company to come along that doesn’t overbook, doesn’t over charge, and doesn’t piss off its customers. That airline will get a lot of business.

… Although according to MarketWatch, customers may hate airline but investors are still quite happy with them. But this will only last as long as customers are willing to put up with the nonsense.

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Nothing on this site is a recommendation because, hey, I can't read your mind and I don't know what you have in your portfolio, and I'm not a licensed financial advisor. So never EVER trade without doing your due diligence. If you want more information about this fascinating topic, please check out the Sin Stocks Disclaimer page which basically says the same thing but more emphatically.