Flight has been part of the human imagination for centuries. Not even a global pandemic could keep people’s feet on the ground for long.
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Airline travel numbers have continued to increase between 2023 and 2024 and are now above pre-pandemic levels, according to Transportation Security Administration data. This is helping bolster airline investments with the U.S. Global Jets ETF (ticker: JETS). The exchange-traded fund, or ETF, tracks the airline industry and is up over 9% year to date.
What’s more, stock analysts are coming out with clear favorites in the industry. If you’re willing to weather some near-term gusts for potential long-term gains, these are six of the best airline stocks to buy now based on analyst opinions:
| Stock | Market Capitalization* |
| Delta Air Lines Inc. (DAL) | $30.9 billion |
| SkyWest Inc. (SKYW) | $2.92 billion |
| Ryanair Holdings PLC (RYAAY) | $31.5 billion |
| Southwest Airlines Co. (LUV) | $17.3 billion |
| Copa Holdings SA (CPA) | $4.1 billion |
| United Airlines Holdings Inc. (UAL) | $17.2 billion |
*As of April 24, 2024
Delta Air Lines Inc. (DAL)
With 21 out of 22 analysts giving Delta a “buy” or “overweight” rating, it’s a natural choice to kick off this list of best airline stocks for 2024. The company’s latest earnings report exceeded analyst earnings per share, or EPS, estimates by $0.08 per share thanks to record revenue for the quarter.
CEO Ed Bastian is feeling bullish for summer — a peak travel season — for which he told shareholders to “anticipate continued strong momentum” for company and even more record revenue.
“We forecast a return to single-digit revenue growth with a healthy economy and as consumers begin to slake pent-up demand,” writes Nicolas Owens, an equity analyst for Morningstar who covers the stock. “We expect Delta to return to 2019 levels of capacity in 2024, and we expect revenue passenger miles will be approximately 22% higher in 2028, our midcycle year, than in 2019.”
Morningstar analysts raised DAL’s fair market value by 15% to $39 per share.
SkyWest Inc. (SKYW)
If you’re looking for more of a bargain buy in the airline industry than DAL, take a look at SkyWest Inc. The holding company for SkyWest Airlines operates through partnerships with United Airlines, Delta Air Lines, American Airlines and Alaska Airlines. Morningstar estimated a $75 fair market value for the stock.
SkyWest operates nearly 500 aircraft that travel to 237 destinations around North America. Together these planes transported 38.6 million passengers in 2023. With a market cap of $2.9 billion, it’s a smaller name in the industry. But SKYW’s small size could work to its advantage. Smaller stocks have more room to grow, or so the theory goes.
SKYW ranked as an “earnings gainer” by U.S. News after reporting a 10% revenue boost year over year for fourth quarter 2023. This allowed the stock to exceed analyst EPS estimates for that quarter by $0.27 per share. Analysts covering the stock give it a “buy,” “overweight” or “hold” rating.
Ryanair Holdings PLC (RYAAY)
Ryanair is Europe’s dominant low-cost carrier with a playful ticker symbol. Ryanair entered COVID-19 in good condition and made it through the pandemic without taking a crippling financial blow. Indeed, the airline has made solid gains over the past year, clocking more than 40% gains since April 2023.
Ryanair has been gaining market share for years thanks to its incredibly cheap prices. The stock receives a “buy” or “overweight” rating from 19 analysts and a “hold” from two others. This is despite falling short of analyst EPS estimates by $0.38 for its latest quarter.
Ryanair shares have more than doubled over the past decade, reaching a new all-time high in April 2024, making it one of the few long-term winners in the airline industry.
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Southwest Airlines Co. (LUV)
Southwest is the blue-chip of airlines, combining both a robust balance sheet and a great low-cost business model. It exceeded analyst EPS estimates for its most recent quarter by $0.25 per share with record fourth quarter and full year operating revenues.
President and CEO Bob Jordan told investors to look forward to $1.5 billion in incremental year-over-year pretax profits, if the company’s initiatives to align its route network with new demands goes as planned.
Analyst opinions are a bit more mixed on LUV, with 17 giving it a “buy,” “overweight” or “hold” rating and five giving it an “underweight” or “sell” rating. But Owens believes the near-term outlook for the company is “quite rosy.”
“Southwest has the best balance sheet of all the U.S.-based carriers,” he writes. “We think the best-positioned airlines are firms like Southwest, which came into (the pandemic) with relatively little debt and an efficient cost base.”
Copa Holdings SA (CPA)
Copa is a Latin American carrier based out of Panama. This centrally located home base gives the airline an advantage in that it can easily add capacity in Mexico, Colombia, Peru and other markets where ailing airlines may need to pull back. Copa also enjoys high-margin flights in its Central American market, where there is minimal discount carrier competition.
The airline’s load capacity, which represents the percentage of available seats that are actually used, increased by 12.3% year over year in March 2024. Like SKYW, CPA also ranked as an earnings gainer by U.S. News after higher-than-anticipated earnings in the most recent quarter. CPA EPS exceeded analyst estimates by $0.55 per share in fourth quarter 2023.
Copa shares are hovering around $100, slightly down from their $110 pre-pandemic levels, but a far cry above the bottom of $31 in 2020. It’s currently fairly valued, according to Morningstar analysts. All 13 analysts covering the stock give it a “buy” or “overweight” rating.
United Airlines Holdings Inc. (UAL)
United Airlines takes the crown as the largest airline by available seat miles — or the number of miles available for purchase — of which the airline has 293 billion. Each year, it transports 140 million customers to more than 300 destinations worldwide.
The airline saw a double-digit increase in demand in the first quarter of 2024 relative to pre-pandemic levels. It posted revenue of $12.5 billion for the first quarter of 2024, up 9.7% year over year and well above analyst estimates. This led to EPS of $0.39 above what was expected of the airline.
Morningstar’s fair market value estimate for the stock is $35 per share, with 14 analysts giving it a “buy,” three giving it an “overweight” and four giving it a “hold” rating. One analyst rates it “underweight.” No one says it’s time to sell.
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6 Best Airline Stocks to Buy This Year originally appeared on usnews.com
Update 04/24/24: This story was previously published at an earlier date and has been updated with new information.
