Volcano Hits Airlines: Go Short

From David White on Seeking Alpha:
When Eyjafjallajokull last erupted in 1821, the eruptions went on for a year. They could well do the same this year. The earthquake activity recently would tend to support the idea that this is an “active” year for seismic events. At the very least we are in for 3+ months of “fear” from the consumer (of air travel to Europe). This may ruin the travel season. Who wants to go breathe noxious air in Europe? Who wants to see famous gardens that are now coated with ash? The ash may cause business travelers to rethink their plans. Why pay for those hefty business class tickets when you can use video conferencing without risking noxious air or a possible crash? Too many will think this way.  

Most major US airlines have significant exposure as well as FedEx and other Transport companies.  Ground Shipment will not be affected although the slowdown in economic activity could have wider repercussions on the economy as a whole. 

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