That’s not quite right - they don’t have to believe that they’re undervalued rather that they are at least fairly valued.
Share buybacks aren’t a stupid idea for Airlines either. If they have too much cash on the balance sheet better to return cash to shareholders as a one off in a tax efficient way rather than pay a regular dividend that they have to cut when the economy turns down.
> Share buybacks aren’t a stupid idea for Airlines either. If they have too much cash on the balance sheet better to return cash to shareholders as a one off in a tax efficient way rather than pay a regular dividend that they have to cut when the economy turns down.
That's what they thought, and what they did, and then they needed a bailout. Companies that don't save for a rainy day deserve to be wiped out.
Share buybacks aren’t a stupid idea for Airlines either. If they have too much cash on the balance sheet better to return cash to shareholders as a one off in a tax efficient way rather than pay a regular dividend that they have to cut when the economy turns down.