Are These Airline Stocks A Good Buy Post-COVID-19?
Airline stocks have been in a rough spot due to the current state of the economy. People stopped flying as soon as the outbreak began. Until we have a feasible vaccine, many will continue to not travel in any way. The travel industry as a whole is taking a big loss due to this issue. The current reopening in the world is showing some hope for airline stocks though. Recently, some airline stocks have begun to see more momentum in the market.
The stock market as a whole crashed including airline stocks back in February. The virus was brought into the country by travelers making airline stocks get hit the hardest. No more tickets were being sold for airlines at that time. Stay at home orders were issued and people followed.
Flight demand is rising as time passes though. Airlines are opening more routes and tickets are being sold. This is bringing the demand back for flights. Italy, has opened its borders for tourists once again. Italy was one of the most infected places, so this news might get people to fly more once again.
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Top Airline Stocks To Watch Post COVID-19: American Airlines
Airline stocks and American Airlines Group Inc. (AAL Stock Report) have been on the rise since around June 4th. This is the date in which American Airlines announced that it is increasing its flight routes by over 50%. This was big news for driving this airline stock back up. The economy is slowly recovering which is helping airline stocks as well.
AAL stock rose back up in early June, but then saw a decline. AAL stock began to bounce in June at $11 a share, then rose up to around $20. As of June 15th AAL stock is at an average of $16.92 a share. The reason for the dip is airline stocks taking more federal aid. This is because these airline companies have not fully recovered yet.
In the first quarter of 2020, American Airlines reported a loss of $2.24 billion. This was its worst loss in revenue since 2008. American Airlines laid off 30% of employees as a result. The intention of removing the employees was to avoid bankruptcy. The airline industry as a whole did receive aid from the government. This helped towards these airline stocks to not fall too much. American Airlines hopes to reopen 100% of its routes eventually. When airline companies rebound we will see an increase in their stock price.
Top Airline Stocks To Watch Post COVID-19: United Airlines
Another airline stock affected by the economic crisis is United Airlines Holdings Inc. (UAL Stock Report). United was founded in the 1920s and is the third-largest airline in the world. UAL stock price has generally been moving with other airline stocks. United has announced that it is going to raise $5 billion to help its purpose. This will be accomplished via its frequent flyer program. This is in order to increase its assets in the market.
Early June shares of UAL stock rose from $29 a share to a high of $48 a share. The hype of airline stocks has temporarily died down for now. On June 15th, UAL stock was trading at an average of $39 a share. This is still above the previous $29 share price. It will be interesting to see United’s next move impacting UAL stock price.
At the moment more flights are being offered to consumers. It is not known when they will all be open again. This economic crisis will still have a lasting effect on airline stocks for a while. AAL stock and UAL stock are just two examples out of many trending airline stocks. Keep an eye on the airline industry as news continues to develop towards a full recovery.