To start things off, airline stocks are stocks of companies that operate in the airline industry. These companies are responsible for providing air transportation services to passengers and cargo. The airline industry is considered a cyclical industry, meaning the stocks of companies in this industry tend to be closely tied to the performance of the overall economy.
When the economy is strong, more people tend to travel, and the demand for air travel increases. This leads to higher revenues for airline companies and their stock prices will typically rise. However, when the economy is in a downturn, people tend to travel less, and the demand for air travel decreases. This leads to lower revenues for airline companies and their stock prices will typically fall.
It’s important for investors to be aware of these economic cycles when considering airline stocks. During times of economic growth, it can be a good idea to invest in airline stocks as they have the potential for strong returns. However, during economic downturns, it may be wise to avoid or reduce investments in these types of stocks. Additionally, investors should also be aware of the industry’s volatility, especially due to the impacts of pandemics, fuel prices, and other global events that can heavily impact the performance of the industry. Keeping this in mind, let’s dive into three airline stocks to watch in the stock market today.
Airline Stocks To Buy [Or Avoid] Today
- American Airlines (NASDAQ: AAL)
- United Airlines Holdings Inc. (NASDAQ: UAL)
- JetBlue Airways Corporation (NASDAQ: JBLU)
American Airlines (AAL Stock)
First, American Airlines Group Inc. (AAL) is one of the largest airlines in the world. It operates a comprehensive global route network, with flights to destinations throughout North America, South America, Europe, Asia, and the Caribbean.
Earlier this month, American Airlines reported that it will announce its fourth-quarter and full-year 2022 financial results. In detail, On January 26th, American Airlines Group will hold a conference call to discuss their financial results for the fourth quarter and full year of 2022. The call will be webcast live, and it will be open to financial analysts and journalists. The call will start at 7:30 am CT.
Since the start of the year, shares of AAL stock are up 28.65% YTD. Meanwhile, on Monday afternoon, AAL stock is trading slightly higher on the day by 0.31% at $16.39 a share.
[Read More] 3 Dow 30 Stocks To Watch In January 2023
United Airlines Holdings (UAL Stock)
Second, United Airlines Holdings (UAL) is one of the largest airlines in the world. It operates a comprehensive route network, with flights to destinations throughout North America, South America, Europe, Asia, and the Caribbean.
Last week, United Airlines Holdings (UAL) announced financial results for the last quarter of 2022, with earnings per share of $2.46 and revenue of $12.4 billion. These figures are higher than what experts had predicted with estimates of $2.07 per share and $12.3 billion in revenue. Additionally, the company’s revenue had grown by 51.4% compared to the same period the previous year.
Year-to-date, shares of United Airlines stocks have jumped by 32.64% so far this year. While, on Monday afternoon, UAL stock is trading modestly lower on the day by 0.21% at $49.36 per share.
JetBlue Airways (JBLU Stock)
Finally, JetBlue Airways Corporation (JBLU) is a low-cost American airline that operates flights to destinations throughout the United States, as well as parts of the Caribbean, Mexico, and South America.
Last week, JetBlue announced that they have appointed Gregg Brown as their new Vice President of Technical Operations. He will join JetBlue next month and will be responsible for managing the company’s maintenance, materials, engineering, quality, and other operational functions. Brown has over 30 years of experience in the industry, and he comes from Spirit Airlines where he served as the Vice President of Technical Operations and led the airline’s maintenance and supply chain functions.
Since the beginning of 2023, shares of JBLU stock have increased by 33.38%. Meanwhile, during Monday afternoon JBLU stock is up 1.04% on the day at $8.67 a share.