5 best airline stocks to buy for Q4 2024
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This page covers the best airline stocks and explains why you might want to invest in them. Learn the fundamentals of what makes the best stocks in the airline industry and find out where to invest.
What are the top airline stocks to buy?
Copy link to sectionYou can own shares in some of the most successful airline companies by investing in stocks within the airline industry. Our experts have been through the stock market to choose their favourites and you can find them ranked in the table below. Click the links to find up to date price information or read on for a summary of each company in turn.
| # | Stock ticker | Company name | Trade now |
|---|---|---|---|
| 1 | LUV | Southwest Airlines | Trade Southwest Airlines 77% of retail CFD accounts lose money. |
| 2 | DAL | Delta Air Lines, Inc. | Trade Delta Air Lines, Inc. 77% of retail CFD accounts lose money. |
| 3 | AAL | American Airlines Group | Trade American Airlines Group 77% of retail CFD accounts lose money. |
| 4 | JBLU | JetBlue Airways Corp. | |
| 5 | EZJ | EasyJet PLC | Trade EasyJet PLC 77% of retail CFD accounts lose money. |
1. Southwest Airlines [NYSE: LUV]
Copy link to sectionSouthwest Airlines is a major American airline group. A promising company for post-pandemic travel recovery, their stock is attractive to investors as they are the world’s largest low-cost carrier servicing 121 destinations in America and 10 other countries.
There was a downturn in profits in 2020, but Southwest made a strong revenue recovery in 2021. Supported by strong current financials in terms of its cash to debt ratio, market forces should enable LUV stock to recoup short-term dips.
Furthermore, the lull in air travel has not impacted Southwest’s operations as adversely as its competitors because the company’s majority focus is on regional air travel. As American regional airports are now completely open for air travel without restrictions as severe as those for international travel, Southwest is well-positioned to overcome the pandemic downturn.
77% of retail CFD accounts lose money.
2. Delta Air Lines, Inc. [NYSE: DAL]
Copy link to sectionDelta Air Lines, Inc. is an American passenger airline company that operates both domestically and internationally. The company’s segments include both airline and refinery, making it a viable stock for investors old and new. The company currently enjoys market presence and has commercial hubs across airports in Amsterdam, London, Mexico City, Seoul, and Paris.
Also experiencing the industry-trend of a downturn in profits during the pandemic, Delta has a been executing promising business development strategy since the post-pandemic recovery.
Though a significant industry-wide concern affecting risk assessment for Delta stock is the highly competitive industry. Delta’s prices are often higher than lower-budget airlines and this places significant pressure on the company’s future performance in a stiff post-pandemic market. Investors must consider this unique risk when considering DAL for their portfolio.
77% of retail CFD accounts lose money.
3. American Airlines Group Inc. [NASDAQ: AAL]
Copy link to sectionAmerican Airlines Group is a holding company primarily operating as a network air carrier transporting passengers and cargo through regional America. It has numerous regional hubs in its American segment, several multinational partner gateways, and notable subsidiaries.
Having experienced a decrease in revenue during the pandemic like its contemporaries in the industry, it made a solid comeback with its post-pandemic financials. Between January and September of 2021, revenues for the group increased by 54% and net losses decreased by 84%.
However, it must be noted that the company’s sizable debt currently outweighs its market cap and this is a risk factor a new investor must contend with when considering the addition of AAL to their portfolio.
77% of retail CFD accounts lose money.
4. JetBlue Airways Corp. [NASDAQ: JBLU]
Copy link to sectionJetBlue Airways Corp. is an American travel company providing air transportation services across regional America, Latin America, The Caribbean, and between London and New York. It currently enjoys more than 30 million passengers a year for its destination map of 86 cities.
In their attempt to overcome the downturn in pandemic revenue, JetBlue’s commercial strategy for recovery has been to add ~125 new routes to their destination map (particularly in Latin America), cut costs with an expected fall in the price of fuel, and roll out competitive economy class pricing.
Though a unique risk new investors to the stock must weigh is JetBlue’s heavy reliance on its expansion strategy for Latin America – an easy downfall if the economy slumped in the region.
5. EasyJet PLC [LSE: EZJ]
Copy link to sectionEasyJet PLC is a UK company that operates a low-cost European airline. It is hugely popular for point-to-point European travel and currently serves approximately 156 airports across 33 countries.
As short-haul air travel continues to increase across Europe, EasyJet can be a great short to medium term investment with adequate risk assessment. It’s seen revenue growth ever since the pandemic, due to putting on more flights and being able to charge higher prices, and there’s no sign of that trend failing.
77% of retail CFD accounts lose money.
Where to buy the best airline stocks
Copy link to sectionThe best place to buy airline stocks is through an online stock broker. We have pulled together the best brokers below so that you can get a quick start simply by following the links in the table.
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What is an airline stock?
Copy link to sectionIt’s a company in the airlines sector operating air transportation services, and managing commercial and/or cargo fleets of air transport. Popular companies that attract investor interest are household names like United Airlines Holdings, Spirit Airlines, Delta Airlines, EasyJet, American Airlines, and businesses of that ilk.
The airline sector is enormous and growing all the time. Travel demand has proved resilient to the pandemic and the industry has battled through other pressures like rising oil prices and the resulting fuel price volatility as well.
Though some air transportation companies are state owned national airlines, there are plenty of private companies to invest in. Make sure to invest in one that’s part of the International Air Transport Association (IATA), the international regulator for airlines.
Are airline stocks a good investment?
Copy link to sectionIf you invest with a view of the long term, yes, they can be. Though you need to understand that not only is the airline industry extremely competitive, it’s also very susceptible to unexpected events – the pandemic, high oil prices, strikes and software problems have all caused fewer flights to take off and lower airline revenue over the past few years.
Any investment made must be without expectation of quick profit and with the view of long-term hold for a return. The main concern in the short term is that the industry heavily relies on the price and supply of fuel and fuel prices have incurred dramatic increases in the last couple of years – meaning unpredicted future costs for airline companies.
As with any stock investment, investors must do their own due diligence into the stock and broker that is the right fit for them.
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