At the beginning of this week, I used news about widespread flight cancellations as a launching pad to start looking at the airline industry. Airline stocks haven’t seen quite as much volatility as I thought they might from the news, which I’ll go ahead and take as an overestimation on my part about how much credence the market would really give that news. It’s also fair to say that in a highly cyclical industry, airline companies are well aware of the risks that come from inclement weather, and while not all contingencies can be anticipated, they do try to factor that risk into their operational models. More →