The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and industrials editor/analyst Isaac Pino discuss topics across the investing world.
In today's edition, Brendan and Isaac discuss the airline industry. On Tuesday, many of the big airlines were down significantly after an increase in the prices of oil and jet fuel. This highlighted one reason why Brendan stays away from airlines: Too many variables that are out of the companies' control can affect the stocks significantly.
While the airlines work to mitigate high jet fuel prices by hedging, they'll hit them sooner or later. This is also an industry that is locked in pricing battles with low customer switching costs, low barriers to entry, and in many cases a heavily unionized workforce.