Can These 2 Top Airline Stocks Rebound With A Second Coronavirus Wave Among Us?
Airline stocks have been in a bad place due to the crash of the economy. Because of the coronavirus outbreak, people stopped flying. It was reported that people were catching the virus by plane. So until we have a vaccine that is distributed worldwide the travel industry will continue to be affected. Reopening helped top airline stocks, but then news of a second wave being possible was released.
All airline stocks dropped with the economic crisis starting back in February. Ticket sales are reaching all time lows for airline companies. A second wave of the virus could be awful for airline stocks. It is essential for the virus to slow down for airline stocks to make a recovery. The virus was brought to the country by people flying so it’s no question why airline stocks fell.
Flight demand is still rising more than it was a few months ago. It will be interesting to see how reopening will affect airline stocks. Many places are allowing for travelers and tourists to come in once again. So let’s look at two airline stocks that are trending in the market.
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Top Airline Stocks To Buy [Or Sell] During The COVID-19 Pandemic: Alaska Air
The first airline stock on this list, Alaska Air Group Inc. (ALK stock report) took a big hit from the economic crisis. It is the 5th largest airline in the United States and employees over 16,000 people. Alaska plans to join the oneworld airline alliance by 2021. Alaska Air took a big hit from the economic crisis due to flight closures. Currently, Alaska is trying to recover by reopening more flights. But the drop in ALK stock price is still significant
In mid February, ALK stock was around $65 a share. Then, the economy proceeded to crash bringing ALK stock down to around $24 a share. Still, ALK stock price has gone up since the crash. As of June 30th, ALK stock is at $36 a share on average. This 63% decrease was bad for investors of ALK stock. It is unsure where ALK stock price will go from here, but airline stocks could rise up once again.
Alaska Air’s decrease in flights and all won’t be forever. Long term investors of ALK stock are hoping that it will rise once the economic crisis ends. Alaska Air has not had many positive statements recently but it could change. Alaska saw its revenue in June drop 80% which did not help ALK stock at all. Keep an eye on this airline stock to see how it moves in the future.
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Top Airline Stocks To Buy [Or Sell] During The COVID-19 Pandemic: Southwest Airlines
The next airline stock to watch is Southwest Airlines Co. (LUV stock report). Southwest was founded in 1971 and is a low-cost airline in the United States. Based in Dallas, it has grown to be a very large airline in the US. The company has more than 60,000 employees and regularly has 4,000 departures a day during peak travels. In 2018 it was reported that Southwest carried the most domestic passengers out of all US airlines. Just like many other airline stocks, LUV stock got crushed by the economic crisis.
Over the last few months, LUV stock price fell as much as 58% a share. Before the pandemic began LUV stock was at around $57 a share. Now as of June 30th, LUV stock price is $34 a share. This is up from the June 26th price of $31 a share for LUV stock. This means that LUV stock price is on the rise. This 7.5% increase will make investors more comfortable with airline stocks.
Currently, Southwest is still using social distancing on its flights. This is in comparison to American Airlines which is operating at 100% capacity at the moment. ALK stock and LUV stock are examples of two airline stocks to watch. This is due to their recent market momentum that is causing shares to rise. If the world continues to reopen and open more flights, airline stocks will go up. It is always good to stay updated on airline stocks to watch as you never know what could happen next.