Insider Weekends: July 29, 2022

Airlines have a challenging reputation among investors on account of the highly competitive and capital intensive nature of these companies. There is little left for investors when all is said and done. To add to margin pressures they are also prone to going bust after every large economic upheaval whether it is the bursting of a real estate bubble or a pandemic. The only time I invested in an Airline was to buy shares of Alaska Airlines a few years before the pandemic and because service fees for things like excess baggage had changed industry dynamics. I was surprised to see that an insider of United Airlines (UAL) not only purchased shares last week but this was his third purchase in the last two months totaling almost $6 million. The insider also happens to be an independent director with an investment background, one of our favorite kind of insiders. Edward Shapiro is the former Managing Director of Boston-based travel, media and technology focused investment firm PAR Capital Management. He has also been on United’s board for the last 6 years. While United is not my first choice when I think about an airline, this purchase might make me revisit my...

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