As the U.S. aviation industry has consolidated, industry margins have risen to levels rarely seen post-deregulation of the 1970s. Today, many analysts expect airlines to quickly return to growth and see gains as early as this year. With coronavirus vaccines offering hopes of a faster-than-expected recovery, investors should see airlines soar once again.
The 9 Best Airline Stocks
Frequently Asked Questions
What is the best airline stock to buy?
- Monopoly over its key routes
- Quality of its services
- Discipline over its balance sheet
These are the characteristics that make the top national carriers like Delta (NYSE:DAL) and American Airlines (NASDAQ:AAL) particularly strong. Regional carriers like Copa (NYSE:CPA) also have monopolies over chokepoint routes. With an ability to raise prices on key routes, these airlines have more room to grow margins.
Are airline stocks a good buy now?
Is it a good time to invest in airline stock?
Will airline stocks recover?
Things, however, won’t be quite the same — as leisure travel outpaces business travel recovery, airlines like Hawaiian (NASDAQ:HA) and Alaska Air (NYSE:ALK) will see passenger volumes return far faster than those that focus on business travelers. It won’t be a smooth ride up, but airline stocks look set to recover as the coronavirus pandemic ends.