Flight has been part of human imagination for centuries. Even a global pandemic can't keep people grounded for long.
Data from the U.S. Transportation Security Administration shows air travel numbers will continue to rise from 2023 to 2024 and are now above pre-pandemic levels. This has helped the US Global Jets ETF (ticker: JETS) strengthen its investment in airlines. This exchange-traded fund (ETF) tracks the airline industry and is up more than 9% since the beginning of the year.
Additionally, equity analysts have announced their clear favorite stocks within the industry. If you're looking to ride out short-term windstorms for long-term gains, here are six of the best airline stocks to buy now, based on analyst opinion.
| stock | Market capitalization* |
| Delta Air Lines, Inc. (DAL) | $30.9 billion |
| SkyWest Co., Ltd. (SKYW) | $2.92 billion |
| Ryanair Holdings PLC (RYAAY) | $31.5 billion |
| Southwest Airlines Co., Ltd. (LUV) | $17.3 billion |
| Copa Holdings SA (CPA) | $4.1 billion |
| United Airlines Holdings, Inc. (UAL) | $17.2 billion |
Delta Air Lines, Inc. (DAL)
With 21 out of 22 analysts giving Delta a Buy or Overweight rating, it's a natural choice to start our list of the best airline stocks for 2024. is. The company's latest earnings report beat analysts' earnings per share (EPS) estimates. $0.08 per share thanks to the quarter's record earnings.
CEO Ed Bastian is bullish on the peak travel season of summer, warning shareholders that the company's earnings will continue to be “strong momentum” with another record-breaking year. I look forward to it.”
“With the economy healthy and consumers starting to release pent-up demand, we expect sales to return to single-digit growth,” said Nicholas Owens, a Morningstar equity analyst who covers the stock. ” “Delta expects to return to 2019 capacity in 2024, and expects passenger mileage revenue in midyear 2028 to be approximately 22% higher than in 2019.”
Morningstar analysts increased DAL's fair market value by 15% to $39 per share.
If you're looking for better deals in the airline industry than DAL, check out SkyWest Inc. SkyWest Airlines' holding company operates through partnerships with United Airlines, Delta Air Lines, American Airlines, and Alaska Airlines. Morningstar estimates the stock's fair market value at $75.
SkyWest operates a fleet of nearly 500 aircraft, serving 237 destinations throughout North America. These aircraft collectively transported 38.6 million passengers in his 2023 year. With a market capitalization of $2.9 billion, it is a relatively small company in the industry. However, SKYW's small size may work to its advantage. The theory is that small-cap stocks have a lot of room for growth.
SKYW reported a 10% year-over-year increase in revenue for the fourth quarter of 2023 and was ranked as a “Growth Company” by U.S. News. This helped the company's stock price beat analysts' EPS estimates for the quarter by $0.27 per share. Analysts covering the stock give it a buy, overweight, or hold rating.
Ryanair Holdings PLC (RYAAY)
Ryanair is Europe's leading low-cost airline with a playful ticker symbol. Ryanair entered COVID-19 in good shape and came through the pandemic without suffering a devastating financial blow. In fact, the company has posted steady profits over the past year, increasing by more than 40% since April 2023.
Ryanair has gained market share over the years thanks to its incredibly low prices. The stock has been rated as a “buy” or “overweight” by 19 analysts and a “hold” from 2 others. That's despite the company's most recent quarter's EPS being $0.38 less than analysts expected.
Ryanair's share price has more than doubled over the past decade, hitting a new all-time high in April 2024, making it one of the airline industry's few long-term winners.
Southwest Airlines Co., Ltd. (LUV)
Southwest Airlines is a blue-chip airline with a strong balance sheet and an excellent low-cost business model. The company beat analysts' EPS estimates by $0.25 per share for the most recent quarter, and achieved record fourth-quarter and full-year operating revenue.
President and CEO Bob Jordan expects pre-tax profits to increase by $1.5 billion year-over-year if the company's efforts to adapt its route network to new demand go as planned. told investors to do so.
Analysts have a somewhat mixed opinion on LUV, with 17 rating it as a buy, overweight or hold, and 5 rating it as an underweight or sell. But Owens believes the company's near-term outlook is “pretty rosy.”
“Southwest Airlines has the best balance sheet of any U.S.-based airline,” he wrote. “We think the best-positioned airlines are companies like Southwest Airlines that entered (the pandemic) with relatively low debt and an efficient cost base.”
Copa is a Latin American airline based in Panama. Being based in this central location gives airlines an advantage in that they can easily add capacity in Mexico, Colombia, Peru, and other markets where struggling airlines need to exit. There is. Copa also captures high-margin tickets in the Central American market, where discount airline competition is minimal.
The company's load capacity, which represents the percentage of seats actually used out of available seats, increased by 12.3% in March 2024 compared to the previous year. Like SKYW, CPA was also ranked as a revenue gainer by U.S. News after posting better-than-expected U.S. revenue. Recent quarter. CPA's EPS exceeded analyst estimates by $0.55 per share in the fourth quarter of 2023.
Copa stock is hovering around $100, down slightly from its pre-pandemic level of $110, but well above its 2020 low of $31. Copa's stock is currently worth a lot, according to Morningstar analysts. All 13 analysts covering the stock have given it a “buy” or “overweight” rating.
United Airlines Holdings, Inc. (UAL)
United Airlines ranks as the largest airline in terms of available seat miles (the number of miles you can buy), with 293 billion of them. Each year, it transports 140 million customers to more than 300 destinations around the world.
The company saw a double-digit increase in demand in the first quarter of 2024 compared to pre-pandemic levels. Sales for the first quarter of 2024 were $12.5 billion, an increase of 9.7% year-on-year, significantly exceeding analyst expectations. This resulted in EPS beating the airline's expectations by $0.39.
Morningstar's fair market value estimate for the stock is $35 per share, and 14 analysts have rated it a “buy,” three have rated it “overweight,” and four have rated it a “hold.” One analyst rates the stock as “underweight.” No one is saying now is the time to sell.
