DAL - The 3 Airline Stocks Set to Soar Highest This Summer
2023-08-04 06:10:43 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Consumer spending is changing as the economy recovers and travel restrictions ease, making it easier for them to indulge their impulses to travel. This phenomenon has pushed travel and airline stocks higher. With the market’s continued attention to airline stocks, it makes sense to have a closer look at where the market is heading and what companies can give investors a boost in their portfolio performance. Let’s look at three soaring airline stocks to buy.
Delta Air Lines (DAL)
Delta Air Lines (NYSE: DAL ) is one of the largest airlines in the United States. Further, it has been one of the main drivers in the sector due to its optimistic outlook on the current travel boom. Delta’s bullish travel demand forecast has also influenced other players’ optimism. DAL reported a $14.61 billion revenue for Q2 2023 , and EPS also smashed consensus estimates of 11.60% with its 86.11% year-over-year (YOY) growth.
Earlier this year, Delta finalized a deal with their pilots for $7 billion worth of cumulative increases in benefits and compensation, including immediate signing bonuses and lower premiums, over the next four years. This set a standard for the industry that pilots now expect from other airline carriers and will help retain them to cover the increased interest in airline travel.
Delta has also started giving back to its investors by reinstating its dividends , starting with its first payment due Aug. 7. This renewed vigor in Delta Airlines and the return on its dividends makes an excellent case for why it is one of the hottest airline stocks this summer.
Copa Holdings (CPA)
Copa Holdings (NYSE: CPA ) is a Latin American airline holdings company that owns and operates Copa Colombia and Copa Airlines headquartered in Panama. Its operations are focused on North America, Central America, the Caribbean and South America. Copa Airlines provides air transportation for passengers, cargo and mail in its Panama City Hub. While Copa Columbia offers the same services on domestic and international markets.
Copa Holdings is one of the world’s best-run airlines and is a big player in the Latin American airline market. The continued surge in demand for travel has delivered boosted Copa’s revenue and earnings. Copa’s Q1 2023 revenue grew 51.73% YOY to $867.26 million. And, EPS grew 470% to $3.99 beating analyst estimates by 17.18%. In addition, Copa also reinstated its dividend of 80 cents a share. This makes it an attractive stock for both income and growth investors. Its numbers and the operational advantage of its location have made it one of the soaring airline stocks to buy.
United Airlines Holdings (UAL)
United Airlines Holdings (NASDAQ: UAL ) is a holdings company that owns and operates the major airline United Airlines . It is one of the three largest airlines in the U.S. and offers flights to domestic and international destinations. These global destinations include Latin America, the Middle East, Europe, Asia, Africa and the Pacific. The high travel demand, lower oil prices and pilot shortage have favored United’s performance. The airline’s Q2 2023 revenue grew by 17% YOY to $14.18 billion. Additionally, EPS grew by 252% to $5.03, and beat analyst estimates by 24.93%.
UAL announced more than 120 additional nonstop flights this month in preparation for the college football season. The airline had over 50,000 passengers during last year’s season and expects more this year. United’s momentum, consistent market outperformance and the increasing number of analyst recommendations make it one of the stocks worth looking into if you want to buy airline stocks.
On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.
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