Top airline stocks to watch as US lifts travel curbs

Highlights

• American Airlines Group Inc. (NASDAQ:AAL) total operating revenue surged over 180% YoY in Q3, FY21/.
  
  
• United Airlines Holdings, Inc. (NASDAQ:UAL) expects its Q4, FY21, revenue to decline between 25% and 30% from its Q4 revenue in fiscal 2019.
  
  
• Southwest Airlines Company’s (NYSE:LUV) revenue jumped over 160% YoY in Q3, FY21

The airline companies are flying high on renewed optimism after the US on Monday lifted the travel curbs on tourists from scores of countries, including Europe, Asia, and Africa. Former President Donald Trump had imposed the ban in March 2020.

From Monday onwards, the US has allowed the entry of fully vaccinated air travelers to the country. However, they must carry a negative test report for the journey. Here we explore five air stocks that may benefit from the lifting of restrictions in the coming months.

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American Airlines Group Inc. (NASDAQ:AAL)

American Airlines is a holding company based in Fort Worth, Texas. It offers air transportation services for passengers and cargo.

The stock of the company was priced at US$22.125 at 11:19 am ET on November 8, up 1.40% from its previous closing price. The AAL stock rose 44.22% YTD. The market cap of the company is US$14.34 billion, and the forward P/E one year is -2.51. Its EPS is US$-5.50.

Top airline stocks to watch as US lifts travel curbs

The stock saw the highest price of US$26.09 and the lowest price of US$11.28 in the last 52 weeks. Its share volume on November 5 was 58,082,520.

The company's total operating revenue was US$8.96 billion in Q3, FY21, compared to US$3.17 billion in the same quarter of the previous year. Its net income came in at US$169 million, against a loss of US$2.39 million in Q3, FY20.

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Image Description: Airline Stocks: AAL, UAL, DAL, LUV, SAVE

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United Airlines Holdings, Inc. (NASDAQ:UAL)

United Airlines is a leading airline company based in Chicago, Illinois, and provides passenger and cargo transportation services to various geographical locations.

The shares of the company traded at US$53.87 at 11:26 am ET on November 8, up 2.20% from their closing price of November 5. Its stock value increased by 26.62% YTD. The firm has a market cap of US$17.49 billion and a forward P/E one year of -3.77. Its EPS is US$-10.58.

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The 52-week highest and lowest stock prices were US$63.70 and US$34.20, respectively. Its trading volume was 21,551,750 on November 5. The total operating revenue of United Airlines was US$7.75 billion in Q3, FY21, compared to US$2.48 billion in the year-ago quarter. It reported a net income of US$473 million versus a loss of US$1.84 billion in Q3, FY20.

It now expects its Q4, FY21 revenue to be down by 25% to 30% from its fourth-quarter revenue of 2019.

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Delta Air Lines, Inc. (NYSE:DAL)

Delta Air Lines is one of the major airline companies in Atlanta, Georgia, and provides air transportation services.

The stock of the company was priced at US$45.38 at 11:30 am ET on November 8, up 2.46% from its previous closing price. The DAL stock jumped 14.36% YTD. The market cap of the company is US$29.04 billion, and the forward P/E one year is -9.67. Its EPS is US$-0.13.

The stock saw the highest price of US$52.28 and the lowest price of US$31.03 in the last 52 weeks. Its share volume on November 5 was 23,651,190.

Its revenue was US$9.15 billion for the three months ended on September 30, 2021, compared to US$12.56 billion in the same period of 2019. Its net income came in at US$1.21 billion, compared to US$1.49 billion for the quarter that ended on September 30, 2019.

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Southwest Airlines Company (NYSE:LUV)

Southwest is a leading airline and low-cost carrier based in Dallas, Texas. It provides air transportation services in the US and international destinations.

Its shares traded at US$52.08 at 11:32 am ET on November 8, down by 0.29% from their closing price of November 5. Its stock value grew 15.96% YTD. The firm has a market cap of US$30.82 billion and a forward P/E one year of -20.09. Its EPS is US$-0.05.

The 52-week highest and lowest stock prices were US$64.75 and US$39.77, respectively. Its trading volume was 13,022,690 on November 5. Its revenue rose 161% YoY to US$4.67 billion in Q3, FY21. Its net income was US$446 million, against a loss of US$1.15 billion in Q3, FY20.

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Source: Pixabay

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Spirit Airlines, Inc. (NYSE:SAVE)

Spirit Airlines is a low-cost carrier based in Miramar, Florida, and provides flight services to various locations.

The stock of the company was priced at US$25.21 at 11:36 am ET on November 8, up 0.76% from its previous closing price. The stock ticked up 8.5% YTD. The market cap of the company is US$2.72 billion, and the forward P/E one year is -5.96. Its EPS is US$-5.35.

The stock saw the highest price of US$40.77 and the lowest price of US$17.34 in the last 52 weeks. Its share volume on November 5 was 8,166,796. Its total operating revenue was US$922.6 million in Q3, FY21, compared to US$401.9 million a year ago. It reported a net income of US$14.8 million against a loss of US$99.1 million in Q3, FY20.

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Bottomline

The lifting of the travel ban will aid the recovery of airline companies from the devastating blow of the pandemic since last year. The Dow Jones US Airlines index jumped 15.95% YTD while increasing 4.48% QTD, showing a steady recovery of the sector this year.