Profits on the horizon?

Recent developments have the potential to make shareholders of airlines happier. But will the fortunes of the sector improve?

- Arul Selvan

It is no secret that Warren Buffett was completely against investing sort of business," owing to its unfavourable characteristics: high-capital requirements to sustain growth, huge fixed costs and commodity pricing leading to losses or very marginal profits at best. But thanks to the fame and glamour associated with being the owner of an airline, many people cannot resist the urge to invest in airline stocks. Even Warren Buffett is embarrassed about his past airline investments and jokingly admits that he is an 'aeroholic' who needs to be constantly talked down wherever he has the urge to invest in airlines.