Caring airlines see higher stock returns

Airlines with the happiest customers are better investments
There is value for airlines in being caring, newspaper The Economist reports. Carriers with the most satisfied customers perform better among investors than those with low satisfaction ratings.
Though the trend seems to be that budget carriers like the widely criticised Spirit Airlines are the most profitable airlines, and Frontier Airlines became a no-frills carrier and reversed its fortunes, a new study has found the opposite is true.
Watermark Consulting found that airlines with the highest customer ratings do vastly better on the stock market than those with poor ratings.
It looked at JD Power and Associates’ annual review of customer satisfaction for North American airlines between 2011 and 2016, then studied the stock performance of the three best and three worst.
The top three carriers by customer satisfaction saw a 295% return on their stocks, more than double the 146% gained by the bottom three carriers.
The Economist


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