The botched terror attack on the Northwest airlines flight that was approaching Detroit on December 25 has taken its toll on Airline stocks as they opened lower Monday. Although the experts say that this will not affect the stocks in the longer term, they do concede the fact that it will have a short-term effect.
“These events tend not to impact stock in the longer term,” said one official. “Investors know what they’ve signed up for when they get involved in the airline space.”
This person added that this kind of downward movement of stock is seen after many accidents in the airline industry and is not always indicative of a downward trend that will stay for very long. It is also noted the stocks fell after an airliner crash landed into the Hudson River last year but bounced back before the end of the day.
He also said the dip in Airline stocks might have nothing to do with the terrorist attack on the other hand. It could also be indicative of investors taking the profits out before the year ends.