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AAA Predicts Record Memorial Day Weekend Travel: 4 Stocks to Watch
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Key Takeaways
AAA projects 45M Americans traveling 50 miles May 21-25, a new Memorial Day record.
87% of the total travelers are expected to drive to their destinations, marking a modest increase from 2025.
AAL plans 40,000 flights in the May 21-26 period, and expects 75M passengers this summer.
The holiday travel rush is gaining momentum quickly. A record number of Americans are expected to travel by road and air to celebrate Memorial Day weekend, the unofficial kickoff to summer.
Travel activity is projected to surpass 2025 levels. This surge is encouraging news for travel-related stocks, especially amid ongoing Middle East tensions that have pushed fuel prices higher. Against this backdrop, investors may want to closely monitor companies such as American Airlines (AAL - Free Report) , Marriott Vacations Worldwide Corporation (VAC - Free Report) , Lindblad Expeditions Holdings (LIND - Free Report) and SkyWest (SKYW - Free Report) .
Memorial Day Travel Outlook
According to the American Automobile Association (“AAA”), 45 million Americans are expected to travel at least 50 miles from home during the May 21-25 Memorial Day period. This year’s domestic travel forecast is slightly higher than that of 2025, setting a new record for Memorial Day weekend travel despite elevated gas prices compared with last year.
Of the total travelers, approximately 39.1 million, or 87%, are expected to drive to their destinations, marking a modest increase from 2025. Notably, higher fuel prices do not appear likely to discourage holiday travelers.
This Memorial Day weekend, motorists are paying more for gasoline than they did a year ago. Natural gas prices have also been climbing recently due to expectations of warmer weather, stronger demand from the power sector and resilient liquefied natural gas exports. Domestic car rentals are 1% less expensive this holiday weekend than they were last year.
Roughly 3.7 million travelers, accounting for 8.1% of total holiday travelers, are projected to fly, up 0.3% from last year. Those who booked flights early have benefited from lower ticket prices compared with 2025. According to AAA data, round-trip domestic airfare for Memorial Day weekend is averaging about $800, roughly 6% lower than last year. Most bookings were made before rising jet fuel prices began impacting airfares.
Meanwhile, travel through other transportation modes — including cruises, trains and buses — is expected to rise 5% year over year to 1.8 million passengers. Based on AAA booking trends, Orlando, FL, ranks as the most popular domestic destination, while Rome tops the list for international travel during the Memorial Day weekend
4 Travel Stocks to Keep a Tab on
Needless to say, a rise in travel will benefit the travel and tourism industry, which calls for a focus on travel and leisure stocks. We have selected four stocks from such areas, each carrying a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AmericanAirlines expects to fly over 4.2 million customers across more than 40,000 flights from May 21 through May 26. The busiest day in terms of travel is likely to be May 22. AAL expects record travel during the entire summer season (May 21-Sept. 8, 2026). During the period, the airline expects to fly a record 75 million passengers across 750,000 flights.
American Airlines’ shares have gained 7.5% over the past year. The carrier’s earnings have surpassed the Zacks Consensus Estimate in three of the past four quarters (missing the mark in the other quarter). The average beat is 2.6%.
Marriott Vacations is a leading global vacation company that offers vacation ownership, exchange, rental, resort and property management services. The company continues to refine its sales and marketing platform to improve conversion rates, increase owner engagement and enhance long-term revenue productivity.
Marriott Vacations’ shares have gained 6% over the past year. The company’s earnings have surpassed the Zacks Consensus Estimate in three of the past four quarters (missing the mark in the other quarter). The average beat is 0.7%.
Lindblad Expeditions is a leading player in global expedition travel. The company offers immersive, educational journeys that span seven continents through its six iconic brands. Driven by the belief that there is always more to be discovered, the company leads travelers to the farthest reaches of the world with an expansive portfolio of ship and land-based expeditions.
Lindblad Expeditions’ shares have surged 85% over the past year. The company’s earnings have surpassed the Zacks Consensus Estimate in three of the past four quarters (missing the mark in the other quarter). The average beat exceeds 200%.
SkyWest is benefiting from strong air travel demand despite the macroeconomic tensions and its associated fleet modernization initiatives. A solid balance sheet enables the regional carrier to reward shareholders with share repurchases consistently.
SkyWest is based in St. George, UT. The resilient business model, whereby the carrier has capacity purchase agreements with major carriers, minimizes its direct exposure to fuel price fluctuations. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missing on the other occasion), delivering an average surprise of 8.8%.
View the Zacks #1 Rank List
Image: Bigstock
AAA Predicts Record Memorial Day Weekend Travel: 4 Stocks to Watch
Key Takeaways
The holiday travel rush is gaining momentum quickly. A record number of Americans are expected to travel by road and air to celebrate Memorial Day weekend, the unofficial kickoff to summer.
Travel activity is projected to surpass 2025 levels. This surge is encouraging news for travel-related stocks, especially amid ongoing Middle East tensions that have pushed fuel prices higher. Against this backdrop, investors may want to closely monitor companies such as American Airlines (AAL - Free Report) , Marriott Vacations Worldwide Corporation (VAC - Free Report) , Lindblad Expeditions Holdings (LIND - Free Report) and SkyWest (SKYW - Free Report) .
Memorial Day Travel Outlook
According to the American Automobile Association (“AAA”), 45 million Americans are expected to travel at least 50 miles from home during the May 21-25 Memorial Day period. This year’s domestic travel forecast is slightly higher than that of 2025, setting a new record for Memorial Day weekend travel despite elevated gas prices compared with last year.
Of the total travelers, approximately 39.1 million, or 87%, are expected to drive to their destinations, marking a modest increase from 2025. Notably, higher fuel prices do not appear likely to discourage holiday travelers.
This Memorial Day weekend, motorists are paying more for gasoline than they did a year ago. Natural gas prices have also been climbing recently due to expectations of warmer weather, stronger demand from the power sector and resilient liquefied natural gas exports. Domestic car rentals are 1% less expensive this holiday weekend than they were last year.
Roughly 3.7 million travelers, accounting for 8.1% of total holiday travelers, are projected to fly, up 0.3% from last year. Those who booked flights early have benefited from lower ticket prices compared with 2025. According to AAA data, round-trip domestic airfare for Memorial Day weekend is averaging about $800, roughly 6% lower than last year. Most bookings were made before rising jet fuel prices began impacting airfares.
Meanwhile, travel through other transportation modes — including cruises, trains and buses — is expected to rise 5% year over year to 1.8 million passengers. Based on AAA booking trends, Orlando, FL, ranks as the most popular domestic destination, while Rome tops the list for international travel during the Memorial Day weekend
4 Travel Stocks to Keep a Tab on
Needless to say, a rise in travel will benefit the travel and tourism industry, which calls for a focus on travel and leisure stocks. We have selected four stocks from such areas, each carrying a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Airlines expects to fly over 4.2 million customers across more than 40,000 flights from May 21 through May 26. The busiest day in terms of travel is likely to be May 22. AAL expects record travel during the entire summer season (May 21-Sept. 8, 2026). During the period, the airline expects to fly a record 75 million passengers across 750,000 flights.
American Airlines’ shares have gained 7.5% over the past year. The carrier’s earnings have surpassed the Zacks Consensus Estimate in three of the past four quarters (missing the mark in the other quarter). The average beat is 2.6%.
American Airlines Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Marriott Vacations is a leading global vacation company that offers vacation ownership, exchange, rental, resort and property management services. The company continues to refine its sales and marketing platform to improve conversion rates, increase owner engagement and enhance long-term revenue productivity.
Marriott Vacations’ shares have gained 6% over the past year. The company’s earnings have surpassed the Zacks Consensus Estimate in three of the past four quarters (missing the mark in the other quarter). The average beat is 0.7%.
Marriott Vacations Price and EPS Surprise
Marriott Vacations price-eps-surprise | Marriott Vacations Quote
Lindblad Expeditions is a leading player in global expedition travel. The company offers immersive, educational journeys that span seven continents through its six iconic brands. Driven by the belief that there is always more to be discovered, the company leads travelers to the farthest reaches of the world with an expansive portfolio of ship and land-based expeditions.
Lindblad Expeditions’ shares have surged 85% over the past year. The company’s earnings have surpassed the Zacks Consensus Estimate in three of the past four quarters (missing the mark in the other quarter). The average beat exceeds 200%.
Lindblad Expeditions Price and EPS Surprise
Lindblad Expeditions price-eps-surprise | Lindblad Expeditions Quote
SkyWest is benefiting from strong air travel demand despite the macroeconomic tensions and its associated fleet modernization initiatives. A solid balance sheet enables the regional carrier to reward shareholders with share repurchases consistently.
SkyWest is based in St. George, UT. The resilient business model, whereby the carrier has capacity purchase agreements with major carriers, minimizes its direct exposure to fuel price fluctuations. The company's earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missing on the other occasion), delivering an average surprise of 8.8%.
SkyWest Price and EPS Surprise
SkyWest price-eps-surprise | SkyWest Quote