Are These The Best Travel Stocks To Invest In Today?
As investors look out for the top stocks to invest in today, travel stocks seem to be in vogue. For one thing, the euro is near parity with the U.S. dollar, which marks a two-decade low. This would be a plus point for Americans traveling to Europe this summer. With this exchange rate, travelers’ dollars will go further when making purchases abroad. As such, it would make sense then that investors would continue to watch the top travel stocks around.
When it comes to investing in travel stocks, aircraft firms like Boeing (NYSE: BA) would come to mind of many. Yesterday, Japanese airline ANA Holdings (OTCMKTS: ALNPY) finalized the order for 20 Boeing 737 MAX jets. As part of its efforts to boost its cargo business, the airline said it would convert two of the 20 777-9 passenger planes it has on order to the 777-8F freighter model. These 737 MAX planes are designed to replace older 737-800 jets on domestic routes. Furthermore, these models will be delivered beginning in the fiscal year that begins in April 2025.
At the same time, there is also no shortage of exciting developments on the airline mergers and acquisitions front as well. Namely, the ongoing push by Frontier (NASDAQ: ULCC) to acquire Spirit Airlines (NYSE: SAVE) would be in the news now. With more consumers flying, travel activity booking firms such as Airbnb (NASDAQ: ABNB) and TripAdvisor (NASDAQ: TRIP) would also come into focus. With all this in mind, here are four more travel stocks to look out for in the stock market now.
Top Travel Stocks To Buy [Or Sell] Today
- Royal Caribbean Group Ltd (NYSE: RCL)
- Delta Air Lines, Inc. (NYSE: DAL)
- Southwest Airlines (NYSE: LUV)
- American Airlines Group Inc (NASDAQ: AAL)
Royal Caribbean Group Ltd
Starting us off today, we have Royal Caribbean, a global cruise holding company that is also one of the largest cruise line operators in the world. It has a global fleet of over 60 ships traveling to more than 1,000 destinations around the world. It is also the owner and operator of three award-winning cruise brands. Namely, they are Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. Ever since its Wonder of the Seas began sailing in March 2022, the ship has claimed the title of largest cruise ship in the world as it seeks to up its game in its battle with Carnival (NYSE: CCL).
In May, the company also announced that it has launched an NFT collection in a partnership with acclaimed artist Rubem Robierb. He is a longstanding featured artist with the cruise line. In light of that, Celebrity Cruises has launched the Peacemakers Sunset NFT collection. “Innovation is a pillar of the Celebrity Cruises experience and a distinguishing characteristic of our ships, so it’s only fitting to bring this heritage into the new digital revolution of NFTs and the metaverse,” said Celebrity Cruises Chief Marketing Officer Michael Scheiner. “The scale and scope of what’s possible in this space, and the way we can connect our guests with new immersive and accessible experiences, is really endless. It’s exciting to take this first step with the talents and artistry of Rubem.” Given all of this, is RCL stock worth investing in right now?
Delta Air Lines Inc.
Following that, we have Delta Air Lines, a legacy carrier in the U.S. In fact, it is one of the world’s oldest airlines in operation. The company claims that more than 4,000 Delta flights take off every day. Also, it connects people across more than 270 destinations on six continents. It also provides award-winning operational excellence, safety, and innovation. Furthermore, it leads the travel industry in building a foundation for sustainable aviation with its Flight to Net Zero policy.
This week, Delta Air Lines has selected Amazon Web Services (AWS), a company of Amazon (NASDAQ: AMZN) to accelerate its digital business transformation. In detail, it announced a multi-year agreement to have AWS serve as its preferred cloud provider. AWS will help Delta unlock technologies and streamline processes that will make the customer experience faster, smoother, and more secure. This would include everything from improving the booking process to the flight experience. The company will build upon AWS’s broad portfolio of cloud technologies and solutions to meet unique industry and regulatory requirements. All things considered, is DAL stock a buy today?
Southwest Airlines is a passenger airline company that offers regularly scheduled flights between domestic and nearby international markets. Moreover, the company provides point-to-point services. According to each policy set forth by Southwest, the company provides supplementary services like EarlyBird Check-In, premium boarding, and transportation for unaccompanied kids and pets. EarlyBird Check-In provides customers with automatic check-in and an assigned boarding position before general boarding positions become available. The company also has approximately 728 Boeing 737 aircraft in its fleet and caters to over 120 destinations in 42 states.
In May, the company announced the launch of Wanna Get Away Plus, a new fare product that adds more flexibility, options, and rewards to the carrier’s fare lineup. In addition to the benefits offered on all Southwest fares, including two free checked bags, no change fees, and free TV/movies/messaging, Wanna Get Away Plus offers transferable flight credit, a new benefit that enables Customers to transfer an eligible unused flight credit to another traveler for future use. The company is also enhancing the benefits to its Anytime and Business Select fares. They will also have the same transferable flight credit benefits as Wanna Get Away Plus. This could spur more consumers to turn to Southwest in the near term, given these perks. With that in mind, should you consider adding LUV stock to your portfolio?
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American Airlines Group Inc.
Another top travel firm to consider in the stock market now would be American Airlines or AAL for short. In essence, AAL, like our previous entries, is another titan in the global airline industry. Through its expansive portfolio, the company offers almost 6,700 flights per day at max capacity. Namely, this would be via its core American Airlines and American Eagle brands. With the return of travel, investors may want to consider AAL stock now as well.
Notably, AAL appears to be confident in its current performance as well. As of earlier this week, the company provided a rosy update on its expectations for its first upcoming quarterly earnings update. According to the press release, AAL is now forecasting its first pandemic-era pre-tax quarterly profit. Overall, the company cites the explosive return in travel demand as a key contributor to this. It is likely doing so by helping to offset AAL’s growing operational costs amidst the global oil shortages. All in all, for investors looking to bet on one of the biggest names in the air travel business, would AAL stock be a top pick for you?