Airline stocks refer to the stocks of companies that operate airlines. These companies are responsible for providing air transportation services for passengers and cargo. The performance of airline stocks can be influenced by a variety of factors, including the overall state of the economy, fuel prices, and competition from other airlines.
In general, the demand for air travel tends to be relatively inelastic, meaning that it is not heavily influenced by changes in price. However, major events such as natural disasters or health epidemics can cause sudden changes in demand for air travel, which can have a significant impact on airline stocks. With this in mind, let’s look at three trending airline stocks to check out in the stock market right now.
Airline Stocks To Watch Now
- Southwest Airlines Company (NYSE: LUV)
- Delta Air Lines Inc. (NYSE: DAL)
- Alaska Air Group Inc. (NYSE: ALK)
Southwest Airlines (LUV Stock)
First, Southwest Airlines (LUV) is an American low-cost airline that operates flights to destinations throughout the United States, as well as to a number of international destinations. Southwest is known for its low fares and its unique business model, which allows it to offer low fares by minimizing operating costs and avoiding many of the fees charged by other airlines.
LUV Recent Stock News
This month, Southwest Airlines announced that it has reinstated its quarterly dividend payment. In detail, the company reported that its Board of Directors has declared a quarterly cash dividend of $0.18 per share. This dividend will be payable to shareholders on record at the close of business on January 10, 2023.
Furthermore, Bob Jordan, CEO, commented, “We are pleased with the Board’s decision to reinstate our quarterly dividend for Shareholders. Today’s announcement reflects the strong return in demand for air travel and the Company’s solid operating and financial results since March 2022. As we bring the year to a close, our fourth quarter 2022 outlook remains strong, and we have a solid plan for 20233.“
LUV Stock Chart
In the last month of trading, shares of LUV stock are up modestly by 1.19%. Meanwhile, during Wednesday’s mid-morning trading session, the airline’s stock is up 1.09% on the day, trading at $38.17 a share.
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Delta Air Lines (DAL Stock)
Next, Delta Air Lines (DAL) is a major American airline that operates flights to destinations around the world. Delta is a founding member of the SkyTeam airline alliance and is one of the largest airlines in the world in terms of passengers and fleet size.
DAL Recent Stock News
Just today, Wednesday, Delta Air Lines announced that has introduced its 2023 guidance for $5 to $6 in adjusted earnings per share. The company also said it estimates FY 2022 GAAP earnings of $2.12 to $2.17 per share. Also in the announcement, Delta said it expects to deliver strong top-line growth and operating leverage due to a full recovery of its network and ongoing advancements in loyalty and premium revenue.
Furthermore, the company’s CEO Ed Bastian commented, “Demand for air travel remains robust as we exit the year and Delta’s momentum is building. Our 2023 outlook for 15 to 20 percent revenue growth over 2022 and margin expansion support a near doubling of EPS to $5 to $6 per share, keeping us on track for our 2024 earnings target of over $7 per share.“
DAL Stock Chart
Over the last six months of trading activity, shares of DAL stock have recovered by 8.99%. While, during Wednesday’s mid-morning trading session, Delta stock is trading higher on the day by 2.46% at $34.43 a share.
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Alaska Air Group (ALK Stock)
Last but not least, Alaska Air Group (ALK) is an American airline holding company. Today it is the parent company of two major airlines: Alaska Airlines and Horizon Air. Alaska Airlines is a major American airline. The airline operates flights to destinations throughout the United States, Mexico, Canada, and Costa Rica. Horizon Air is a regional airline that operates shorter flights on behalf of Alaska Airlines.
ALK Recent Stock News
Back in October, Alaska Air Group reported a beat for its Q3 2022 financial and operating results. In detail, the company announced third-quarter 2022 earnings of $2.53 per share and revenue of 2.8 billion. This is versus Wall Street’s consensus estimates for the quarter which were earnings of $2.41 per share and revenue of $2.8 billion. In addition, the company also experienced a 44.8% increase in revenue versus the same period, in 2021.
ALK Stock Chart
Looking at the last six months of trading action, the shares of Alaska Air Group stock have rebounded by 12.83%. Though, ALK stock is trading down on the year by 15.28%. Meanwhile, during Wednesday’s mid-morning trading action, ALK stock is up 1.13% on the day at $45.81 a share.
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