14 Airline Stocks Flying High in 2019
Airlines recently went through a string of consolidation with the most recent purchase of Westjet Airlines (WJA-T) and the acquisition proposal of Transat (TRZ.A-T) by Air Canada (AC-T).
The airline industry has recently received extensive press with the Boeing 737 Max crash and subsequent grounding of crafts. There are also concerns over the cost competition brought about by low-cost carriers. Furthermore, they can be vulnerable to oil price and geopolitical events.
CNBC was reporting a few weeks ago (in April) that analysts predicted Airline stocks could still rally another 20% this year.
In the long-term, analysts expect millennials who value experience to help bolster the airline industry.
🛫 Airlines
Canadian Stocks
Westjet Airlines (WJA-T)
Onex put a bid in to acquire the carrier, and regulators should approve the deal. They have been coming out with better numbers and guidance in the last quarter.
Opinion about WJA.TO: Good entry point, dividend safe? Last quarter OK. Problem is pilot unionization. Fuel price has gone up. Stock’s gone…
Stockchase Air Canada (AC-T)
The largest airline in Canada. A well run company. They are in exclusive talks to buy Air Transat since May of this year. They experienced some problems with the Boeing 737 issue.
Opinion about AC.TO: Stockchase Research Editor: Michael O'Reilly If you can wrap your head around buying at the time of a potential labour strike -…
Stockchase Chorus Aviation Inc (CHR-T)
They operate Air Canada Jazz. The new agreement with them will run for 17 years. They pay a good dividend and are doing very well with a big profit margin.
Opinion about CHR.TO: Allan Tong’s Discover Picks Bay Street is giving CHR stock the benefit of the doubt with six buys and no holds or sells. The…
Stockchase Transat .A. T. Inc (TRZ.A-T)
Transat is in exclusive acquisition talks with Air Canada and the outlook is very positive.
Canada Jetlines Ltd (JET-X)
A Canadian ultra low-cost airline out of Vancouver that is just getting off the ground. They recently announced that they successfully launched their system for ticket sales.
Opinion about JET.V: Junior uranium. You have to be wary of big market caps that are explorations because if they don't come up with something, the…
Stockchase US Stocks
Southwest Airlines (LUV-N)
The world’s largest low-cost carrier. They pay a good dividend. They are moving into more longer range flights and moving out of their traditional shorter range flights.
Opinion about LUV: Any runway left? It's at $61, and he says it'll go to $75. He recommended this in January at the start of the reopening and still…
Stockchase American Airlines Group (AAL-Q)
Price competition has been tough for American Airlines and the stock price has been volatile. They recently extended their 737 MAX fllight cancellation period.
Opinion about AAL: An $11 stock, but he prefers LUV because it doesn't lose money and has a better long-term outlook.
Stockchase Spirit Airlines Inc. (SAVE-N)
An ultra-low-cost carrier from Florida. They are 7th in the commercial airline sector in the US. Low fuel costs have improved the bottom line significantly. They are anticipating a capacity growth of 13% in 2019, year-to-year.
Opinion about SAVE: Airlines are trading at very low multiples compared to other transportation. It is dirt cheap. An ultra low cost carrier. Flies…
Stockchase Delta Air Lines Inc (DAL-N)
The company is doing well and ordering premium economy seats that will boost revenue. They have good free cash flow too. The company intends to continue buying back shares and raising dividends.
Opinion about DAL: (A Top Pick Feb 04/25, Down 13.1%)Stockchase Research Editor: Michael O’Reilly Our PAST TOP PICK with DAL has triggered its stop…
Stockchase United Continental Holdings (UAL-N)
An airline holding company that owns and operates United Airlines. Their earnings are growing and revenues per available seat mile is also up 4.3% since last year.
Opinion about UAL: Airline stocks have a tendency to be volatile. There is some seasonality in the spring time and you get a time in the summer when…
Stockchase Boeing (BA-N)
Stock prices have been struggling since the 737 Max crash. They are trading at 23x forward earning which is considered quite expensive. However, they are in a duopoly and demand for transport is strong. It will not go up in the short-term but worth holding.
Opinion about BA: They just announced huge Q2 deliveries. He sees this flying much higher. Expert opinions on Boeing (BA) — buy, sell, or hold…
Stockchase JetBlue Airways Corp. (JBLU-Q)
An American low-cost carrier and the 6th largest in the US. The company hopes to double earnings by 2020. They are in the final stages of their program to cut costs in maintenance and airline staff.
Opinion about JBLU: The will get tax relief from the election. For decades airlines were hated businesses because they were so competitive. Now the…
Stockchase Skywest Inc (SKYW-Q)
A holding company that operates SkyWest Airlines and ExpressJet. Their cash outlook is great and are considered undervalued right now.
Opinion about SKYW: Cheap. Expert opinions on Skywest Inc (SKYW) — buy, sell, or hold ratings from Canadian and US analysts on Stockchase.
Stockchase Airbus (EADSY-OTC)
A European aerospace corporation. They have a backlog of orders and China seems to favor Airbus over Boeing. They bought the CSeries program from Bombardier last year that should create more lightweight planes.
Opinion about EADSY: (A Top Pick Apr 17/20, Up 95%) It will benefit from the rebound in air travel when that happens. Their largest competitor is in…
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