5 airline stocks to watch as US opens travel for vaccinated visitors

Highlights

  • Southwest Airlines Company’s (NYSE: LUV) operating revenue rose more than 297% YoY.
  • The stock of American Airlines Group Inc. (NASDAQ: AAL) gained 34.37% YTD.
  • The operating revenue of Alaska Air Group, Inc. (NYSE: ALK) increased by 263% YoY.

The travel sector, which saw steep losses during the pandemic, has cheered the Biden administration’s decision to allow vaccinated travelers to the US. The relaxations will come into force from November this year, marking an end to the travel ban imposed by former US President Donald Trump in the wake of the pandemic more than a year ago.

However, travelers must provide documentary proof that they have been vaccinated against Covid and a negative test report taken three days before travel, the White House said on Monday. In addition, the passengers should provide their contact details like telephone numbers, email addresses, etc., for contact tracing, and wearing masks is mandatory during the journey.

Here we explore five airline stocks that may benefit from the ease of travel restrictions.

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Southwest Airlines Company (NYSE: LUV)

Southwest Airlines Co, also known as Southwest, is a leading airline company in the US. It offers air transportation services in the US and international destinations. It is based in Dallas, Texas.

The shares of the company traded at US$49.34 at 11: 15 am ET on September 21, down 0.48 percent from the closing price of September 20. Its stock value increased by 10.08 percent YTD.

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The firm has a market cap of US$29.19 billion and a forward P/E one year of -26.51. Its EPS is US$-2.74. The 52-week highest and lowest stock prices were US$64.75 and US$35.82, respectively. Its trading volume was 7,771,220 on September 20.

The operating revenue of the Texas-based firm soared 297.6 percent YoY to US$4.00 billion in Q2 of fiscal 2021. Its net income was US$348 million, or US$0.57 per diluted share, compared to a loss of US$915 million, or a loss of US$1.63 per diluted share, in the year-ago quarter.

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Airline stocks: LUV, UAL, DAL, AAL, ALK

United Airlines Holdings, Inc. (NASDAQ: UAL)

United Airlines is a Chicago, Illinois-based airline holding company. It provides transportation and cargo services in North America, Asia, Europe, etc.

The stock of the company was priced at US$44.295 at 11:24 am ET on September 21, down 2.15 percent from its previous closing price. The UAL stock rose 8.74 percent YTD. The market cap of the company is US$14.48 billion, and the forward P/E one year is -3.76. Its EPS is US$-18.35.

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The 52-week highest and lowest stock prices were US$63.70 and US$31.22, respectively. Its share volume on September 20 was 14,700,330.

The company reported total operating revenue of US$5.47 billion for the quarter ended on June 30, 2021, representing an increase of 270.9 percent from the prior year's same quarter. It reported a net loss of US$434 million, or a loss of US$1.34 per diluted share, compared to a loss of US$1.62 billion, or US$5.79 per diluted share, in the year-ago quarter.

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Delta Air Lines, Inc. (NYSE: DAL)

Delta Airlines, also known as Delta, is an Atlanta, Georgia-based airline company and provides air travel services to around 300 locations across 60 countries.

The shares of the company traded at US$40.60 at 11:35 am ET on September 21, down 0.44 percent from its closing price of September 20. Its stock value increased by 5.29 percent YTD.

The firm has a market cap of US$25.90 billion and a forward P/E one year of -10.87. Its EPS is US$-10.49.

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The highest and lowest prices in the last 52 weeks were US$52.28 and US$27.92, respectively. Its trading volume was 16,633,900 on September 20.

The total operating revenue of Delta Airlines was US$7.12 billion in the June quarter of FY21, compared to US$12.53 billion in the same quarter of 2019. Its net income came in at US$652 million, or US$1.02 per diluted share, compared to a net income of US$1.44 billion, or US$2.21 per diluted share for the quarter ended on June 30, 2019.

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American Airlines Group Inc. (NASDAQ: AAL)

American Airlines is a Fort Worth, Texas-based airline holding company, and provides travel services to customers.

The stock of the company was priced at US$20.04 at 12:09 pm ET on September 21, down 1.43 percent from its previous closing price. The AAL stock rose 34.37 percent YTD.

The market cap is US$12.90 billion, and the forward P/E one year is -2.75. Its EPS and annualized dividend are US$-10.46 and US$0.40, respectively.

The 52-week highest and lowest stock prices were US$26.09 and US$10.63, respectively. Its share volume on September 20 was 43,601,260.

The firm's total operating revenue was US$7.47 billion in Q2, FY21, compared to US$1.62 billion in the year-ago quarter. It reported a net income of US$19 million, or US$0.03 per diluted share, against a net loss of US$2.06 billion, or a loss of US$4.82 per diluted share in Q2, FY20.

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5 airline stocks to watch as US opens travel for vaccinated visitors

Source: pixabay

Alaska Air Group, Inc. (NYSE: ALK)

Alaska Air is a SeaTac, Washington-based airline holding company that offers carrier services to passengers.

The shares of the company traded at US$56.56 at 12:16 pm ET on September 21, down 0.70 percent from its closing price of September 20. Its stock value jumped 15.68 percent YTD.

The firm has a market cap of US$7.06 billion, and a forward P/E one year of -30.79. Its EPS is US$-4.86. The 52-week highest and lowest stock prices were US$74.25 and US$34.83, respectively. Its trading volume was 2,285,046 on September 20.

The company's operating revenue surged 263 percent YoY to US$1.52 billion in Q2, FY21. Its net income was US$397 million, or US$3.18 per basic share, against a net loss of US$214 million, or a loss of US$1.74 per basic share in the year-ago quarter.

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Bottomline

According to travel industry experts, the sector is expected to bounce back post-November with the ease of restrictions. The Dow Jones US Airlines index rose 7.30 percent YTD but decreased 7.14 percent QTD. However, investors must evaluate the companies carefully before investing in stocks.

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