Categories Analysis, Retail

Don’t miss the flight! Here is why you need to board airline stocks now

It’s that time of the year when everyone packs up for their vacation. But before you board your flight, it might make sense checking into some of the airline stocks, which are all set for a good flight after a long period of staying grounded, thanks to fuel price inflation.

The holiday season is the airline industry’s best seasonal quarter when demand for air travel reaches its yearly peak. This year is no different and the initial signs are here already.

airline stock movement october vs november

Traffic during the Thanksgiving weekend peaked, bucking fears of prolonged slowness in the airline sector. Delta Air Lines (DAL), meanwhile, said a record number of passengers – 2.3 million – used its services from November 21 to November 25.

The bulls were quick to react. While most airline stocks ended October in red, all of them were back into a rally mode in all of November. In fact, Spirit Airlines (SAVE) stock jumped 15% earlier this week after the company raised its fourth-quarter TRASM growth outlook from 6% to 11%. The stock is up over 19% so far this year.

Separately, Alaska Air Group (AAL) raised its RASM guidance for the fourth quarter to 12.60 – 12.80 cents from the earlier projection of 12.40-12.60 cents.

American Airlines Group Q3 profit falls 49% but beats estimates

Adding to this optimism is the fact that the oil prices, which have haunted airline stocks throughout this year, are slowly receding over a weak demand outlook as well as fears of a supply glut.

All these factors coming together, combined with strong consumer confidence and low unemployment rates, promise a lucrative period ahead for airline companies. There is possibly no better time to board airline stocks.


We’re on Apple News! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment

Viewing Highlight