We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
3 Airline Stocks You Should Keep an Eye on in 2H24
Read MoreHide Full Article
Airline stocks have been flying high, primarily owing to strong passenger revenues. Air travel demand has roared back from the pandemic lows and is particularly strong on the leisure front. Demand for business travel is also bouncing back nicely. Driven by upbeat passenger volumes, stocks in the airline industry have performed well in the first half of 2024.
With passenger traffic anticipated to remain high throughout the year, airline stocks are expected to perform strongly in the latter half of 2024 as well. Passenger volumes are likely to move further northward in the ongoing summer season. Per Airlines for America, U.S. airlines are anticipated to carry 271 million passengers from Jun 1 to Aug 31, 2024.
The projection marks an all-time high. Air travel is expected to soar over the Labor Day holiday period later this year as well. It is also anticipated to be high during winter, thereby keeping airlines in good shape. Moreover, efforts to reward shareholders by the industry players indicate financial strength.
This optimism regarding air travel is not limited to the United States only. In June, the International Air Transport Association, or IATA, increased its current-year global profitability (net) forecast for the industry to $30.5 billion from $25.7 billion estimated in December last year. Net profit in 2023 was $27.4 billion. The top line in 2024 is now anticipated to be $996 billion compared with the previous estimate of $964 billion. The revised revenue forecast, a record high, indicates a 9.7% increase from the 2023 actuals driven by upbeat passenger volumes.
Given this encouraging backdrop, we have highlighted three airline stocks that investors should keep a tab on as they are anticipated to perform well going forward. Additionally, the companies have witnessed favorable earnings estimate revisions for the current year.
Our Choices
SkyWest (SKYW - Free Report) carries a Zacks Rank #2 (Buy) at present. The upbeat air travel demand bodes well for this St. George, UT-based regional carrier. SkyWest's fleet modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 6.9% over the past 90 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SKYW has an expected earnings growth rate of more than 100% for 2024. The company delivered a trailing four-quarter earnings surprise of 128.09%, on average. The Zacks Consensus Estimate for SKYW’s 2025 earnings has improved 7.4% over the past 90 days.
Image Source: Zacks Investment Research
United Airlines (UAL - Free Report) is based in Chicago. The gradual increase in air travel demand (particularly for leisure) is aiding UAL. However, high operating costs are hurting the bottom line.
Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2024 earnings being revised 0.2% upward. The Zacks Consensus Estimate for 2025 earnings has been revised 0.4% upward over the past 60 days. UAL currently carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
Alaska Air (ALK - Free Report) : The company, based in Seattle, WA, is being aided by the uptick in air travel demand. The carrier’s shareholder-friendly attitude also bodes well.
Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has been revised 2% upward. The Zacks Consensus Estimate for 2025 earnings has been revised 5.1% upward over the past 60 days. ALK currently carries a Zacks Rank #3.
Image Source: Zacks Investment Research
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Airline Stocks You Should Keep an Eye on in 2H24
Airline stocks have been flying high, primarily owing to strong passenger revenues. Air travel demand has roared back from the pandemic lows and is particularly strong on the leisure front. Demand for business travel is also bouncing back nicely. Driven by upbeat passenger volumes, stocks in the airline industry have performed well in the first half of 2024.
With passenger traffic anticipated to remain high throughout the year, airline stocks are expected to perform strongly in the latter half of 2024 as well. Passenger volumes are likely to move further northward in the ongoing summer season. Per Airlines for America, U.S. airlines are anticipated to carry 271 million passengers from Jun 1 to Aug 31, 2024.
The projection marks an all-time high. Air travel is expected to soar over the Labor Day holiday period later this year as well. It is also anticipated to be high during winter, thereby keeping airlines in good shape. Moreover, efforts to reward shareholders by the industry players indicate financial strength.
This optimism regarding air travel is not limited to the United States only. In June, the International Air Transport Association, or IATA, increased its current-year global profitability (net) forecast for the industry to $30.5 billion from $25.7 billion estimated in December last year. Net profit in 2023 was $27.4 billion. The top line in 2024 is now anticipated to be $996 billion compared with the previous estimate of $964 billion. The revised revenue forecast, a record high, indicates a 9.7% increase from the 2023 actuals driven by upbeat passenger volumes.
Given this encouraging backdrop, we have highlighted three airline stocks that investors should keep a tab on as they are anticipated to perform well going forward. Additionally, the companies have witnessed favorable earnings estimate revisions for the current year.
Our Choices
SkyWest (SKYW - Free Report) carries a Zacks Rank #2 (Buy) at present. The upbeat air travel demand bodes well for this St. George, UT-based regional carrier. SkyWest's fleet modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 6.9% over the past 90 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SKYW has an expected earnings growth rate of more than 100% for 2024. The company delivered a trailing four-quarter earnings surprise of 128.09%, on average. The Zacks Consensus Estimate for SKYW’s 2025 earnings has improved 7.4% over the past 90 days.
United Airlines (UAL - Free Report) is based in Chicago. The gradual increase in air travel demand (particularly for leisure) is aiding UAL. However, high operating costs are hurting the bottom line.
Over the past 60 days, the stock has seen the Zacks Consensus Estimate for 2024 earnings being revised 0.2% upward. The Zacks Consensus Estimate for 2025 earnings has been revised 0.4% upward over the past 60 days. UAL currently carries a Zacks Rank #3 (Hold).
Alaska Air (ALK - Free Report) : The company, based in Seattle, WA, is being aided by the uptick in air travel demand. The carrier’s shareholder-friendly attitude also bodes well.
Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has been revised 2% upward. The Zacks Consensus Estimate for 2025 earnings has been revised 5.1% upward over the past 60 days. ALK currently carries a Zacks Rank #3.