Do You Have These Aviation Stocks On Your April 2022 Watchlist?
As many countries have reopened their borders, tourism and travel activities have been picking up. Understandably, after 2 years of the pandemic, consumers are itching to be on the move again. Hence, it is no surprise why many investors are looking at the top aviation stocks in the stock market. Besides, oil prices are simmering down from their recent spike. Since jet fuel makes up for a huge chunk of an airline’s operating costs, lower oil prices would translate to lower costs for airlines.
Southwest Airlines (NYSE: LUV) could be one that could make your list. On March 29, the company announced the completion of its new maintenance facility at Denver International Airport. The $100 million facility serves as an important location within its support network and will be the foundation of its long-term growth in Colorado. Elsewhere, investors could consider American Airlines (NASDAQ: AAL). Yesterday, the company announced that it will expand routes to connect its Miami hub with Ocho Rios, Jamaica, beginning on November 5. Overall, this expansion furthers the company’s dominance in the Caribbean. All in all, be on the lookout for these five top aviation stocks in the stock market today.
Aviation Stocks To Watch In The Stock Market Today
- Spirit Airlines Incorporated (NYSE: SAVE)
- The Boeing Company (NYSE: BA)
- Delta Airlines Inc. (NYSE: DAL)
- Alaska Air Group Inc. (NYSE: ALK)
- Joby Aviation Inc. (NYSE: JOBY)
Starting us off today is Spirit Airlines, a company that positions itself as an ultra-low fare airline. In fact, the company is a leader in providing customizable travel options that start with an unbundled fare. Also, its Fit Fleet is one of the most fuel-efficient in the U.S. The company also serves destinations throughout the U.S., Latin America, and the Caribbean. In the past month, SAVE stock has risen by over 40%.
In February, rival discount airline Frontier Airlines (NASDAQ: ULCC) agreed with Spirit to merge into a discount airline behemoth. However, it seems that JetBlue (NASDAQ: JBLU) is looking to challenge this merger. Just yesterday, JetBlue made a $3.6 billion all-cash offer to acquire Spirit. As such, this raises questions about Spirit’s current deal with Frontier. According to Spirit, the board is evaluating JetBlue’s proposal and will “pursue the course of action it determines to be in the best interests of Spirit and its stockholders.” Given this news, will you be watching SAVE stock as the news develops?
Following that, we have Boeing. In short, Boeing is a multinational corporation that designs, manufactures, and sells aerospace equipment. This ranges from airplanes, rotorcrafts, and rockets to satellites and telecommunication wares to name a few. Additionally, the company boasts more than 10,000 Boeing-built commercial airlines that are in service worldwide. This makes up almost half of the world’s fleet. Seeing that BA has been down by nearly 30% in the past year, could things start to turn around with the following news?
On Monday, aircraft lessor Air Lease (NYSE: AL) said that it was buying 32 more of Boeing’s 737 MAX jets. Consequently, this brings the total number of 737 MAX jet orders to almost a thousand since the plane returned to commercial service. As a matter of fact, the 737 MAX is Boeing’s newest single-aisle jet, competing with the likes of Airbus’ (OTCMKTS: EADSY) A320 family of planes. With that being said, does BA stock deserve a spot on your portfolio?
Delta Airlines is one of the biggest airlines in the U.S. and is a legacy carrier. Being one of the oldest airlines in operation, it has accumulated decades of experience in the industry. The airline, along with its subsidiaries and regional affiliates, operates over 5,400 flights daily and serves 325 destinations in 52 countries on six continents. Not to mention, Delta is also ranked second globally by number of scheduled passengers carried and fleet size.
In an attempt to modernize its fleet, Delta announced that it will start operating its first of 155 new Airbus A321neo aircraft from May 20 this year. The debut flight using the new aircraft will take off from its Boston hub and head for San Francisco. The Airbus A321neo is the latest addition to Delta’s fleet of planes. Furthermore, it is a fuel-efficient new-generation aircraft. Hence, reinforcing the airline’s position as an industry leader in executing environmentally-sustainable endeavors. All things considered, should you add DAL stock to your watchlist?
Alaska Air Group
Another aviation stock to consider is Alaska Air. The holding company owns and operates two certificated airlines. This includes Alaska Airlines, a mainline carrier, and Horizon Air, a regional carrier. Besides that, it also owns McGee Air Services, a company that provides ground handling services for aircrafts. ALK and its regional partners serve more than 120 destinations across the United States, Belize, Canada, Costa Rica and Mexico. In the past month, ALK stock has risen by over 20%.
Towards the end of last month, the airline announced a new partnership with Air Tahiti Nui. Namely, it will be joining ALK’s array of global airline partners, further connecting the West Coast to the South Pacific. Evidently, this will help the further development of tourism to French Polynesia, including from the market of Western Canada. Besides that, ALK has also raised its first-quarter 2022 outlook due to improved demand and yields. Particularly, it expects the percentage of seats filled by passengers to be 76-78% for the quarter compared to 71-74% previously. Taking this news into consideration, should you invest in ALK stock?
[Read More] 5 Top Transportation Stocks To Watch Right Now
Joby Aviation develops and manufactures all-electric, vertical take-off and landing aircraft. The company has set its eyes on operating as a commercial passenger aircraft by the beginning of 2024. As such, the company has spent more than a decade developing and testing its zero-emission aircraft. In addition, the aircraft is capable of traveling more than 150 miles on a single charge while carrying four passengers. The company also boasts a team of more than 800 engineers and experts working to bring aerial ridesharing to the skies.
Last month, the company shared its outlook for the year. Notably, Joby will be focusing primarily on getting the proper certification for its aircraft. It will also be starting early manufacturing operations. Besides that, Joby plans to expand its facilities at its manufacturing plant to support building its first production line aircraft as well as additional parts. As the company makes further progress, would you buy JOBY stock?