The airlines’ industry was one of the hardest-hit industries last year, as lockdowns and travel bans halted airline operations worldwide entirely for several months. However, with 69% of the adult population vaccinated with at least one dose, travel restrictions are being eased, and the demand for airline services is rebounding…
The global airlines market is projected to grow at a 12.7% CAGR over the next five years to reach $744 billion by 2026. According to the International Air Transport Association (IATA), air traffic in the Americas region is expected to witness solid growth over the next 20 years. Pent-up demand and increasing consumer spending are driving a gradual return in leisure and commercial travel.
Given this backdrop, Wall Street analysts expect airline stocks Delta Air Lines, Inc. (DAL – Get Rating), United Airlines Holdings, Inc. (UAL – Get Rating), Alaska Air Group, Inc. (ALK – Get Rating), and SkyWest, Inc. (SKYW – Get Rating) to gain altitude with a 25%-plus rally in the coming months.
DAL provides scheduled air transportation for passengers and cargo across a global network of more than 300 destinations in over 50 countries. The Atlanta, Ga.-company operates through two segments, Airline and Refinery.
On May 3, DAL and Sabre formulated a transformative global distribution agreement to drive change in the travel industry through commercial and technological innovation, while enabling DAL to continue to extend its reach with Sabre’s valuable network of global travel buyers.
DAL’s total operating revenue increased 385.4% year-over-year to $7.13 billion in its fiscal second quarter, ended June 30. Its operating income grew 116.9% from its year-ago value to $816 million, while its net income improved 111.4% year-over-year to $652 million. The company’s EPS increased 111.3% year-over-year to $1.02.
Analysts expect DAL’s revenues to increase 162.1% year-over-year to $8.16 billion in the current quarter, ending September 2021. A $0.27 consensus EPS estimate for the current quarter indicates a 108.2% rise from the same period last year. Shares of DAL have gained 50.9% over the past year.
Of the 14 Wall Street analysts that rated DAL, 11 rated it Buy while three rated it Hold. The $57.69 median price target indicates a potential 42.8% upside from its $40.41 last closing price. The 12-month price targets range from a low of $45.00 to a high of $73.00.
Chicago-based UAL provides air transportation services in North America, Asia, Europe, Africa, the Pacific, the Middle East, and Latin America. It transports people and cargo through its mainline and regional fleets. The company also offers catering, ground handling, and maintenance services for third parties.
On July 13, UAL agreed to acquire 100 of Heart Aerospace’s ES-19 aircraft, a 19-seat electric airliner that can decarbonize regional air travel. This purchase should complement the…
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