ALGT - Top 10 performing airline stocks of 2023 as travel demand is on the rise
2023-08-11 07:42:21 ET
TD Asset Management highlighted that travel demand has hit pre-pandemic levels and international demand is outpacing domestic travel as airlines look to capitalize on the growing travel trend. The financial firm also highlighted that the revenue growth that is projected for 2023 is actually above pre-COVID 2019 levels.
However, despite the rise in revenues, airline stocks have still struggled over the longer term, with TD noting that "airline share prices are - broadly speaking - 30% to 50% lower than they were in 2019."
The reasoning behind the lower share price is mostly due to higher expenses. So even though revenues are rising, profits remain lower as fuel costs have gone up, labor prices have risen, and the overall inflationary environment has added pressure to general operating expenses for airlines compared to where everything was in 2019.
To see how airline stocks have stacked up against each other, Seeking Alpha constructed a top 10 list of 2023-performing airline stocks.
Top 10 Performing Airline Stocks of 2023
No. 10: American Airlines Group ( AAL ) +24% .
No. 9: Ryanair Holdings ( RYAAY ) +34% .
No. 8: Delta Air Lines ( NYSE: DAL ) +38% .
No. 7: International Concolidated Airlines Group ( OTCPK:ICAGY ) +39% .
No. 6: United Airlines Holdings ( NASDAQ: UAL ) +42% .
No. 5: Controladora Vuela Compania de Aviacion ( VLRS ) +44% .
No. 4: Allegiant Travel Company ( ALGT ) +56% .
No. 3: Gol Linhas Aereas Inteligentes ( GOL ) +59% .
No. 2: Azul ( AZUL ) +99% .
No. 1: SkyWest Inc. ( NASDAQ: SKYW ) +155% .
See a visual year-to-date chart below of all 10 names:
Moreover, for investors that are looking to gain further exposure to the airline industry, they may look towards the industry’s exclusive exchange traded fund. The U.S. Global Jets ETF ( NYSEARCA: JETS ) provides exposure to 59 different airline names, which include the likes of Southwest Airlines ( LUV ), Hawaiian Holdings ( HA ), Alaska Air Group ( ALK ), JetBlue Airways ( JBLU ), and more.
For reference, JETS trades at +19.8% in 2023 but is down 33.8% over the past five years which falls in-line with what TD Asset Management stated. See the chart below.
Additionally, see Seeking Alpha's Quant Ratings for the airline industry as well.
More on the Airline Industry:
- Airline bookings are strong in latest data read from Bank of America
- Southwest Airlines falls after Jefferies is the latest firm to pull its bull rating
- Delta Air Lines: Headwinds Are Taking Shape (Rating Downgrade)
- Top Airline Stocks To Buy In 2023
For further details see:
Top 10 performing airline stocks of 2023 as travel demand is on the rise