Wall Street is Forecasting a 40% Increase in These 2 Airline Stocks

The resurgence of the COVID-19 cases, due primarily to the rapid spread of the Delta variant, has led to the resumption of restrictive measures in several parts of the world. This could dampen the airline industry’s recovery in the near term. However…

increasing vaccinations and the full FDA approval of Pfizer Inc. (PFE) and BioNTech SE’s (BNTX) COVID-19 vaccine should help the industry recover over time.

The Transportation Security Administration (TSA) reported a significant number of screenings during the Labor Day weekend due to leisure travel. Also, according to a ReportLinker report, the global airlines market is expected to reach $744 billion by 2026.

So, we think it could be wise to add relatively stronger airline stocks, Delta Air Lines, Inc. (DAL – Get Rating) and Spirit Airlines, Inc. (SAVE – Get Rating), to one’s  watchlist now. Wall Street analysts expect these two stocks to rally by more than 40% in price in the coming months.

Delta Air Lines, Inc. (DAL – Get Rating)

DAL operates through approximately 1,100 aircraft and provides scheduled air transportation for passengers and cargo internationally. The Atlanta, Ga.-based company operates through two segments: Airline and Refinery. It sells its tickets through various distribution channels, reservations, online travel agencies, and traditional brick and mortar.

On May 3,DAL announced its partnership with Sabre Corporation (SABR) to launch new products, such as New Airline Storefront. Jeff Lobl, DAL’s managing director of global distribution, said, “We are grateful to Sabre for their innovative and pioneering spirit in taking this journey with Delta and establishing a new and exciting path forward for third-party distribution.”

DAL’s total operating revenue increased 385.4% year-over-year to $7.13 billion in the second quarter, ended June 30, 2021. Its operating income came in at $816 million, versus a $4.82 billion operating loss. Its net income came in at $652 million compared to a $5.72 billion net loss in the prior-year period. Also, its EPS was  $1.02, versus  a loss per share of $9.01 in the year-ago period.

Analysts expect DAL’s revenue and EPS to increase 43.5% and 224.6%, respectively, year-over-year to $41.27 billion and $4.31 in its fiscal year 2022. The stock has gained 27% in price over the past year to close yesterday’s trading session at $40.35. Wall Street analysts expect the stock to hit…

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