A Turnaround for Airline Stocks

After years of bankruptcies and mergers, the airline business is profitable (for a change) and likely to remain so for years.

Yes, you can make money in airline stocks, one of the market's sorriest sectors over time. There's a simple explanation for the long-suffering group's turnaround: Airlines are making money (for a change), and prospects for future profits are as bright as they've been in years. The Standard & Poor's Dow Jones U.S. Airlines index gained 31.1% in 2012, beating Standard & Poor's 500-stock index by nearly 15 percentage points.

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Elizabeth Leary
Contributing Editor, Kiplinger's Personal Finance
Elizabeth Leary (née Ody) first joined Kiplinger in 2006 as a reporter, and has held various positions on staff and as a contributor in the years since. Her writing has also appeared in Barron's, BloombergBusinessweek, The Washington Post and other outlets.