Pricing power crucial for airline stocks

Warren Buffett's recent interest in airlines has seen stocks go up globally

It is not only Warren Buffett or Chinese investors who are keen to increase their exposure on aviation stocks. Buffett’s Berkshire Hathaway has lapped $9 billion worth of US aviation stocks over the past few months, reportedly on expectations of consolidation and structural changes in the US aviation sector. China’s top three airlines have gained the most among Asian airlines this year. In India, SpiceJet and Jet Airways ran up 18 per cent each over the past week on a favourable demand outlook, expectation of steady crude oil prices and reasonable valuations. Gains for InterGlobe Aviation, which runs IndiGo Airlines,