We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Year-End Travel Set to Hit Record High: 4 Stocks in Focus
Read MoreHide Full Article
Higher fuel costs have posed a major challenge for airlines but the ongoing holiday season appears to be one of the best ones for airline operators. After witnessing robust traffic during the Thanksgiving weekend, airline companies are gearing up to handle even bigger traffic during the Christmas weekend.
Hence, investors should utilize this opportunity and invest in airline stocks like American Airlines Group Inc. (AAL - Free Report) , Southwest Airlines (LUV - Free Report) , Delta Air Lines, Inc. (DAL - Free Report) and United Airlines Holdings, Inc. (UAL - Free Report) .
Christmas Travel to Soar
According to the American Automobile Association (AAA), the 2023 holiday season is projected to be the busiest period for domestic air travel in more than two decades or since it started tracking in 2000.
The Thanksgiving weekend already saw record domestic traffic and now the AAA projects 7.5 million passengers traveling through U.S. airports during the 10-day holiday season between Christmas and New Year, higher than the 7.3 million recorded in 2019.
The average cost of round-trip tickets has been recorded as "slightly lower" than previous years.
“This year-end holiday forecast, with an additional 2.5 million travelers compared to last year, mirrors what AAA Travel has been observing throughout 2023,” Paula Twidale, Senior Vice President of AAA Travel, said.
According to the AAA, the number of people opting for alternative modes of travel, such as trains or cruises, is expected to exceed 2019 levels. This marks a 2.2% increase from 2022 and stands as the second-highest number since the AAA began recording travel data in 2000.
Last year, inclement weather disrupted travel plans during this period, leading numerous airlines to cancel thousands of flights nationwide. However, this year, most airlines are better prepared to handle such situations more efficiently.
Airline companies were one of the biggest casualties of the pandemic that brought travel to a standstill. This saw all major U.S. airline companies incurring huge losses in 2020 and 2021.
The following year saw traffic picking up but 2023 has so far merged as a turnaround year for airlines.
The removal of pandemic-induced restrictions has led to a surge in pent-up demand for air travel. Despite significant challenges posed by increased fuel and labor costs in the airline industry, there is considerable optimism surrounding air travel this year.
Airlines are actively preparing to accommodate the heightened demand by adding more seats per day during the period. Additionally, enticing discounts are being offered as part of efforts to attract more passengers.
Stocks to Watch
Given this situation, it would be ideal to keep these four airline stocks on your radar.
American Airlines Group Inc.’s wholly-owned subsidiaries are American Airlines, Envoy Aviation Group, PSA Airlines and Piedmont Airlines. AAL’s primary business is to provide passenger and cargo services.
American Airlines Group’s expected earnings growth rate for the current year is 378%. Shares of AAL have gained 16.3% in the past 30 days. American Airlines Grouppresently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Southwest Airlines is a passenger airline that provides scheduled air transportation in the United States and 'ten near-international' markets. LUV is one of the largest domestic air carriers (measured in terms of the number of domestic originating passengers boarded) in the United States.
Southwest Airlines’ expected earnings growth rate for the current year is 19.8%. Shares of LUV have gained 26.7% in the past 30 days. Southwest Airlines presently has a Zacks Rank #3.
Delta Air Lines, Inc. is one of the four carriers that controls the majority of the U.S. aviation market (the carriers account for more than 60% of the domestic market share).
Delta Air Lines’expected earnings growth rate for the current year is 90.6%. Shares of DAL have gained 18.9% in the past 30 days. Delta Air Linescurrently has a Zacks Rank #3.
United Airlines Holdings, Inc. transports people and cargo not only throughout North America but also to destinations in Asia, Europe, the Middle East and Latin America. UAL’s hubs are at Newark Liberty International Airport, Chicago O’Hare International Airport, Denver International Airport, George Bush Intercontinental Airport, Los Angeles International Airport, A.B. Won Pat International Airport, San Francisco International Airport and Washington Dulles International Airport.
United Airlines Holdings’ expected earnings growth rate for the current year is 285.3%. Shares of UAL have gained 6.8% in the past 30 days. United Airlines Holdings presently has a Zacks Rank #3.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Year-End Travel Set to Hit Record High: 4 Stocks in Focus
Higher fuel costs have posed a major challenge for airlines but the ongoing holiday season appears to be one of the best ones for airline operators. After witnessing robust traffic during the Thanksgiving weekend, airline companies are gearing up to handle even bigger traffic during the Christmas weekend.
Hence, investors should utilize this opportunity and invest in airline stocks like American Airlines Group Inc. (AAL - Free Report) , Southwest Airlines (LUV - Free Report) , Delta Air Lines, Inc. (DAL - Free Report) and United Airlines Holdings, Inc. (UAL - Free Report) .
Christmas Travel to Soar
According to the American Automobile Association (AAA), the 2023 holiday season is projected to be the busiest period for domestic air travel in more than two decades or since it started tracking in 2000.
The Thanksgiving weekend already saw record domestic traffic and now the AAA projects 7.5 million passengers traveling through U.S. airports during the 10-day holiday season between Christmas and New Year, higher than the 7.3 million recorded in 2019.
The average cost of round-trip tickets has been recorded as "slightly lower" than previous years.
“This year-end holiday forecast, with an additional 2.5 million travelers compared to last year, mirrors what AAA Travel has been observing throughout 2023,” Paula Twidale, Senior Vice President of AAA Travel, said.
According to the AAA, the number of people opting for alternative modes of travel, such as trains or cruises, is expected to exceed 2019 levels. This marks a 2.2% increase from 2022 and stands as the second-highest number since the AAA began recording travel data in 2000.
Last year, inclement weather disrupted travel plans during this period, leading numerous airlines to cancel thousands of flights nationwide. However, this year, most airlines are better prepared to handle such situations more efficiently.
Airline companies were one of the biggest casualties of the pandemic that brought travel to a standstill. This saw all major U.S. airline companies incurring huge losses in 2020 and 2021.
The following year saw traffic picking up but 2023 has so far merged as a turnaround year for airlines.
The removal of pandemic-induced restrictions has led to a surge in pent-up demand for air travel. Despite significant challenges posed by increased fuel and labor costs in the airline industry, there is considerable optimism surrounding air travel this year.
Airlines are actively preparing to accommodate the heightened demand by adding more seats per day during the period. Additionally, enticing discounts are being offered as part of efforts to attract more passengers.
Stocks to Watch
Given this situation, it would be ideal to keep these four airline stocks on your radar.
American Airlines Group Inc.’s wholly-owned subsidiaries are American Airlines, Envoy Aviation Group, PSA Airlines and Piedmont Airlines. AAL’s primary business is to provide passenger and cargo services.
American Airlines Group’s expected earnings growth rate for the current year is 378%. Shares of AAL have gained 16.3% in the past 30 days. American Airlines Grouppresently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Southwest Airlines is a passenger airline that provides scheduled air transportation in the United States and 'ten near-international' markets. LUV is one of the largest domestic air carriers (measured in terms of the number of domestic originating passengers boarded) in the United States.
Southwest Airlines’ expected earnings growth rate for the current year is 19.8%. Shares of LUV have gained 26.7% in the past 30 days. Southwest Airlines presently has a Zacks Rank #3.
Delta Air Lines, Inc. is one of the four carriers that controls the majority of the U.S. aviation market (the carriers account for more than 60% of the domestic market share).
Delta Air Lines’expected earnings growth rate for the current year is 90.6%. Shares of DAL have gained 18.9% in the past 30 days. Delta Air Linescurrently has a Zacks Rank #3.
United Airlines Holdings, Inc. transports people and cargo not only throughout North America but also to destinations in Asia, Europe, the Middle East and Latin America. UAL’s hubs are at Newark Liberty International Airport, Chicago O’Hare International Airport, Denver International Airport, George Bush Intercontinental Airport, Los Angeles International Airport, A.B. Won Pat International Airport, San Francisco International Airport and Washington Dulles International Airport.
United Airlines Holdings’ expected earnings growth rate for the current year is 285.3%. Shares of UAL have gained 6.8% in the past 30 days. United Airlines Holdings presently has a Zacks Rank #3.