4 Top Airline Stocks To Watch Today
Airline stocks have been making a comeback in the stock market lately. For obvious reasons, the global pandemic has haunted the aviation industry over the past two years. Throughout the earlier part of the pandemic, sentiments were weak due to travel restrictions and the threat of new variants. However, with the rise in vaccination rates and the reopening of borders, interest in the sector returned. Besides, the White House announced earlier this week that the Centers for Disease and Control’s (CDC) public transportation mask order has now been lifted. This comes after U.S. District Judge Kathryn Kimball Mizelle ruled the mandate as unlawful.
Some may argue that airline companies are already anticipating a strong recovery as they begin to ramp up their services. For instance, Southwest Airlines (NYSE: LUV) announced last week that it will be adding additional service to its flight schedule beginning in early June. This includes more options for California travel and new services for Hawaii, the Pacific Northwest, and the Caribbean. Besides that, United Airlines (NASDAQ: UAL) announced its first-quarter financials this week. Safe to say, a convincing quarterly report may well set the tone for the aviation industry. Therefore, here are some of the top airline stocks in the stock market today worth looking at.
Airline Stocks To Watch Right Now
- Alaska Air Group, Inc (NYSE: ALK)
- Delta Air Lines, Inc. (NYSE: DAL)
- American Airlines Group Inc (NASDAQ: AAL)
- JetBlue Airways Corporation (NASDAQ: JBLU)
Alaska Air is a company that engages in airline operations. Essentially, it has three operating segments, Mainline, Regional, and Horizon. The company’s Mainline segment includes scheduled air transportation on its Boeing and Airbus jet aircraft throughout the U.S. and certain parts of Mexico and Costa Rica. Meanwhile, its Regional segment includes Horizon’s and other third-party carriers’ scheduled air transportation for short-distance networks within the U.S. and Canada. ALK stock has been moving sideways for most of the year. Could things be looking up soon?
In fact, Alaska Air and Air Tahiti Nui just announced a new global partnership late last month. Operations will begin in October this year and there will be a new nonstop service between airports in Seattle and Papeete, Tahiti. This collaboration will tap into the Western Canada market and help the development of tourism to French Polynesia. Not to mention, the company’s Mileage Plan members can now earn miles on all Air Tahiti Nui flights. Besides, with the company announcing its quarterly earnings tomorrow, would you consider jumping on the ALK stock bandwagon ahead of time?
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Following that, we have the global air transportation company, Delta Air. In detail, the company provides scheduled air transportation for passengers and cargo throughout the U.S. and across the globe. For a sense of scale, Delta Air has hubs and market presence in some of the largest cities in the world. This includes Amsterdam, London-Heathrow, Paris, and Seoul, to list a few. Impressively, DAL stock has gained some momentum over the past month, rising more than 20% within the period.
Well, this can largely be attributed to its recent March 2022 quarter that was announced last week. The company saw a strong rebound in demand as the coronavirus pandemic continues to ease. Delta Air returned to profitability in March as it announced a solid adjusted operating margin of almost 10%. Moving forward, it expects the June quarter revenue to accelerate to 93% to 97% with unit revenue up double digits compared to 2019. All in all, these are all positive developments that signal a healthy recovery in the aviation industry. With that in mind, should DAL stock be a top airline stock to watch right now?
Another top airline company to note is American Airlines. It operates as a network air carrier that provides scheduled air transportation for passengers as well as cargo. Together with its regional partner American Eagle, the company offers an average of nearly 6,700 flights daily to 350 destinations across 50 countries. It is also a founding member of the Oneworld alliance, whose members and members-elect offer nearly 14,250 flights daily to over 1,000 destinations. Now, despite a bumpy start to the year, AAL stock has risen more than 20% within the past month.
Furthermore, American Airlines recently doubled down on its partnership with Expedia Group (NASDAQ: EXPE) to offer more travel choices for its customers. With this partnership, travelers booking the company’s flights on Expedia’s sites will have more options for customization. For instance, travelers will now be able to purchase elevated offers such as Main Plus. The offer includes complimentary access to Main Cabin Extra, preferred seats, and many more. Investors should also note that the company will be announcing its financials on Thursday. All things considered, would you add AAL stock to your watchlist?
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To sum up the list, we will be looking at the low-cost airline company, JetBlue. In detail, the company provides air transportation services across the U.S., the Caribbean, and Latin America, and between New York and London. The company’s entire fleet is equipped with Fly-Fi, a broadband product that allows gate-to-gate Wi-Fi at every seat. Earlier this month, JetBlue introduced its highly anticipated flights between Boston and London starting this summer. Following its success in New York, the company is confident that it will be able to replicate this success as it advances its growth strategies in these regions.
Besides that, JetBlue has recently shown its intent to acquire Spirit Airlines (NYSE: SAVE). The company confirmed earlier this month that it has submitted a proposal to the Board of Directors of Spirit to acquire the company for $33 per share in cash. JetBlue is confident that its proposal is a “superior proposal” under Spirit’s current merger agreement with Frontier (NASDAQ: ULCC). Not long after that, Spirit Airlines responded favorably as it announced that it is willing to engage in discussions with JetBlue’s proposal. Should this materialize, the combination of the two airlines will position JetBlue as the most compelling national low-fare challenger to the four large dominant U.S. carriers. Given these exciting developments, should JBLU stock gain more attention now?
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