Airline Stocks Have Struggled. Here Are a Few Highfliers.

Some airline stocks trade at five times projected earnings. Why so expensive, you might be wondering. The group’s reputation on capital preservation at the moment ranks somewhere between damaged and U.K. pension manager. An index of U.S. airlines is down 42% in a year, more than double the beating absorbed by the broad U.S. market.

Plus, there’s wage and fuel inflation, and the industry is desperately low on both pilots and planes. But maybe near-term obstacles can help prevent long-term squander, much the way rainy weather brings the murder rate down.