Investing in airline stocks can be a great way to grow your wealth, if you know what you’re doing. There are several factors to consider, such as the economy, the airline industry, travel trends and the airline’s future.
Delta Air Lines
Investing in Delta Air Lines stock is a smart move for any airline enthusiast. Considering the fact that the company is America’s largest national carrier, Delta stock is expected to provide excellent trading opportunities for investors in the years ahead.
Delta Airways was founded in 1925 and is based in Atlanta, Georgia. The company has a network of over 300 destinations in more than 50 countries. It’s an airline that’s built a solid reputation for reliability and customer service. It also has strategic alliances with Korean Air, Air France-KLM, and Aeromexico.
Delta’s latest financial results show that the company is on the road to recovery. Revenue was up 23% in the third quarter, while operating capacity declined by 17%. The company reported that it has made extra investments to ensure the reliability of its operations.
American Airlines
Despite the recent market euphoria, there are still a few reasons to consider investing in airline stocks. While there are a few that have the potential to provide solid long-term gains, there are also plenty of airlines that are likely to struggle in the short-term.
During the last two years, significantly low demand caused a toll on all of the air carriers. The price of jet fuel has skyrocketed over the past year. Even after several months of declining prices, jet fuel is still a major problem for the industry.
Over the last three years, American Airlines’ revenues have declined 15%. However, the stock has posted a profit for the first time since the coronavirus pandemic. This is not a very good sign, however.
American Airlines is facing competition from Delta Air Lines and Spirit Airlines. In addition, it is still embroiled in an antitrust lawsuit. It has also been fighting to recover from the coronavirus crisis.
Alaska Air Group
Despite tepid air travel demand, Alaska Air Group (NYSE: ALK) shares have potential upside. The company has been one of the strongest performers in the US airline sector for years. In fact, it has exceeded the Zacks Consensus Estimate in each of the trailing four quarters.
However, it’s difficult to determine how much value the shares have in the short term. The company is facing rising fuel costs, which are sending ticket prices skyrocketing. Its long-term liabilities are growing as well.
Alaska Airways (NASDAQ: AAL) flies a regional network of flights. Its fleet includes Airbus A320 and Boeing 737 (B737) jets. The airline’s aircraft also operate in parts of Canada and Mexico.
In early May, the company was burning through $260 million in cash. It had also burned through $400 million in cash in March.
Cargojet Inc.
Founded in 2002, Cargojet is a Canadian based company that offers a variety of air cargo transportation services. It is a public company with over a thousand employees. It operates air cargo co-loads between sixteen major Canadian cities. In addition, the company also provides air cargo specialty charter services.
As of November 1, 2018, the company reported an eighteen percent rise in revenue and an eighteen percent rise in profits. In addition, the company’s third quarter was the best in more than a decade. The company’s main base is located at the John C. Munro Hamilton International Airport, in Ontario, Canada.
The company also operates over night air cargo services. The company carries around 25 million pounds of cargo a week, most of it in the form of freight. The company also offers emergency relief supplies, livestock shipments, and military equipment movements.
Lufthansa
Investing in Lufthansa stock is a good idea for anyone interested in the airline industry. However, it is important to consider the fundamentals before making a decision. Fortunately, Lufthansa has been stabilizing its operations in the last few months. The company reported adjusted FCF for 2Q22.
Lufthansa is a Star Alliance member, which means that it offers a wide variety of airline options for passengers. They also operate in Europe, where they have connections to one of the strongest economies in the world. Their network airlines include Eurowings, Lufthansa German Airlines, and SWISS. These airlines also provide a premium service to their customers.
Lufthansa is a large company with many brands across Europe. They are also one of the leaders in sustainability.
Lufthansa is also the second largest airline in Europe. It operates out of the main hub in Frankfurt. Its main passenger traffic is within Europe. The company also offers air freight services to its customers.
