DAL to UAL: Five S&P 500 airlines stocks to explore this summer

Airlines stocks bore the brunt of two back-to-back major setbacks in recent months. The covid pandemic and higher fuel costs have almost brought the industry to a standstill. Investors now speculate whether the upcoming summer holidays could bring any windfall to the struggling sector. Last Thursday, US Transport Secretary Pete Buttigieg, in a virtual meeting, urged the industry captains to prepare for the expected busy travel season in advance, mainly heading into the July 4 holiday and the rest of the summer. Most travel stocks have been rallying since.

Here we explore the YTD performance of five S&P 500 airline stocks.

Delta Air Lines, Inc. (NYSE: DAL)

Price range in last 52 weeks: US$46.27 to US$29.21

Atlanta, Georgia-based Delta Air Lines is one of the world's largest airlines. It serves around 300 destinations in over 50 countries. 

For the March quarter of 2022, the company’s operating revenue was US$9.35 billion compared to US$4.15 billion a year ago. Its net loss was US$940 million or US$1.48 per share diluted versus a net loss of US$1,177 million or US$1.85 per share diluted a year ago.  

Delta has a market capitalization of US$19.05 billion. Its PE ratio is 37.61, and the forward P/E for one year is 9.86. DAL stock was up 0.17% to US$29.63 at 12:05 pm ET on June 17.

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Southwest Airlines Company (NYSE: LUV)

Price range in last 52 weeks: US$57.14 to US$34.71

Southwest Airlines is one of the largest domestic carriers in the US, based on passengers boarded. It operates over 700 Boeing 737 aircraft fleet. The company is based in Dallas, Texas. 

The company generated operating revenue of US$4.69 billion for the March quarter of 2022 compared to US$2.05 billion in the corresponding quarter of last year. 

Its net loss was US$278 million or US$0.47 per diluted share versus a net income of US$116 million or US$0.19 per diluted share in the March quarter of 2021. 

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On June 16, it announced extending its flight schedule for holiday travel through January 4, 2023. Southwest has a market capitalization of US$21.19 billion. Its PE ratio is 38.02, and the forward P/E for one year is 13.00. The LUV was down 0.20% to US$34.91 at 12:05 pm ET on June 17.

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Alaska Air Group, Inc. (NYSE: ALK)

Price range in last 52 weeks: US$65.16 to US$38.20

Seattle, Washington-based Alaska Air Group operates two airlines: Alaska and Horizon. Its three operating segments are Mainline, Regional, and Horizon.

Its operating revenue was US$1.68 billion for the quarter ended March 31, 2022, compared to US$0.797 billion for the same quarter in the prior year. 

It booked a net loss of US$202 million or a loss per share of US$1.14, compared to a loss of US$161 million or US$1.05 per share diluted in the year-ago quarter.

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On June 16, the company announced launching five new routes for the summer holidays, including nonstop daily service from Seattle to Cleveland and Miami, Boise to Idaho Falls and Las Vegas; and between Anchorage and Salt Lake City.  

Alaska Air has a market capitalization of US$5.09 billion. Its PE ratio is 10.96, and the forward P/E for one year is 9.50. The ALK stock rose 1.62% to US$39.305 at 12:05 pm ET on June 17.

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American Airlines Group Inc. (NASDAQ: AAL)

Price range in the last 52 weeks: US$22.55 to US$11.93

American Airlines is one of the world's largest by scheduled revenue passenger miles. 

It is based in Fort Worth, Texas. The company has recently revamped its fleet and is now the US’s youngest fleet of legacy carriers. 

For the quarter ended March 31, 2022, its revenue was US$8.9 billion against US$4.01 billion in the previous year. The net loss was US$1.64 billion or US$2.52 per share diluted versus a net loss of US$1.25 billion or US$1.97 per share diluted in the March quarter of 2021.

American Airlines has a market capitalization of US$8.48 billion. The AAL stock was up 3.04% to US$12.5299 at 12:05 pm ET on June 17.

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United Airlines Holdings, Inc. (NASDAQ: UAL)

Price range in last 52 weeks: US$56.41 to US$30.54

Chicago, Illinois-based United Airlines is a leading US air carrier focusing on international travel.

Its operating revenue was US$7.57 billion for the three months ended March 31, 2022, compared to US$3.22 billion for the same period in 2021. 

The net loss totaled US$1.38 billion or US$4.24 per diluted share compared to US$1.36 billion or US$4.29 per diluted share in the March quarter of 2021. 

Its current market capitalization is US$11.87 billion. Its forward P/E for one year is 231.87. UAL stock surged 1.50% to US$35.30 at 12:05 pm ET on June 17.

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Bottom line:

The airline industry expects increased travel demand with the pandemic gradually normalizing. However, investors should carefully analyze the stocks before investing in them.