Shorting airlines is really a bet on oil, S3 says
Short interest in U.S. airlines has risen from 8% to 13% of float, with JetBlue (JBLU) seeing the largest increase. S3 Partners attributes this to the inverse relationship between airline stocks and oil prices since the Iran war began. American Airlines (AAL) and Alaska Air (ALK) also saw significant increases in short interest. S3 notes that short sellers are effectively betting on sustained high oil prices. Fuel costs are the airlines' largest risk due to volatility.



