In this article, we will discuss: 12 Best Airport Stocks to Invest in Now.
Prior to the pandemic, the travel and tourism industry contributed 10.4% of GDP (US$10.3 trillion) and 10.5% of all jobs (334 million), making it a vital sector of the global economy. The industry’s contribution to global GDP in 2023 was 9.1%, up 23.2% from 2022 and just 4.1% below 2019 levels, according to WTTC‘s most recent research. Domestic visitor expenditure increased by 18.1%, surpassing 2019 levels, while employment increased by 27 million jobs, a 9.1% year-over-year gain. Spending by foreign visitors increased by 33.1%, but it was still 14.4% less than before the outbreak.
Julia Simpson, WTTC President & CEO, on April 2024, stated:
“The future is very bright. We can predict a record-breaking 2024. The sector’s global economic contribution is set to reach an all-time high of $11.1 trillion, which will generate one in every ten dollars worldwide. The sector is also expected to support nearly 348 million jobs, an increase of 13.6 million jobs on its 2019 record. We trust that our data will support policymakers, industry professionals and individuals engaged in the evolution of travel.”
According to Fortune Business Insights, in 2024, the size of the global market for airport services was valued at $196.96 billion. The market is expected to increase at a compound annual growth rate of 14.4% from $222.26 billion in 2025 to $570.12 billion by 2032. In 2024, North America held a 28.98% market share, dominating the airport services industry. Furthermore, it is projected that the airport services market in the United States will expand considerably, reaching an estimated value of $130.37 billion by 2032. This growth will be fueled by a rise in air and passenger traffic as well as cargo transportation.
According to S&P’s report, the worldwide travel retail sector is expected to expand by 7%-10% between 2024 and 2025, greatly above the 3.3% and 3.2% growth in the global GDP in 2024 and 2025, respectively. Sales won’t approach 2019 levels until 2025, but air traffic will surpass pre-pandemic levels in 2024. Growth will be driven by Asia-Pacific, helped by better infrastructure and a growing middle class. Duty-free shopping, however, might be slowed by declining consumer confidence and fewer business tourists.
As per the aforementioned report, over the next two to four years, it is anticipated that global air traffic will increase more quickly than GDP due to growing middle classes in Asia-Pacific and, to a lesser extent, Latin America, as well as better infrastructure and connectivity. By incorporating technology, personalization, and hybrid stores that blend duty-free shopping with dining options and entertainment, travel businesses are adjusting. Customer experiences are also being improved by a move toward luxury items, fashion, electronics, and regional merchandise. More passenger time will be available for shopping because of increased digitization, remote check-in, and bag-drop services. However, sector profits are under pressure from growing airport concession fees, which have leveled off at higher levels since the pandemic. Chinese operators have secured reduced concession rates, giving them a competitive edge, even though the majority of travel shops would see a rise in expenses.
Looking ahead, according to Deloitte’s report, in 2025, travel demand is projected to be high due to post-pandemic lifestyle changes, greater freedom in working remotely, and a promising economic outlook. TSA throughput climbed by 7% year over year between December 20 and January 5 as a result of US tourists planning longer and more costly travels during the recent winter holiday season. A post-pandemic reprioritization, with 40% of travelers raising their holiday budgets because travel has become more important, and the growing trend of “laptop lugging,” where half of passengers want to work remotely while traveling, are important factors. Travel expenditure was also supported by the fact that the percentage of Americans who reported an improved financial situation jumped from 31% to 37%. Travel agencies need to adjust to new AI applications, changing global travel patterns, increased service offerings, and possible regulatory changes under a new administration to meet this demand.
With that said, here are the 12 Best Airport Stocks to Invest in Now.
An aerial view of a cargo plane taking off from a commercial airport, reflecting the company’s overnight air cargo services.
Methodology:
We sifted through holdings of airport services ETFs and online rankings to form an initial list of 20 airport stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 900 hedge funds in Q3 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s market capitalization as of February 12 for stocks that are trading under OTC.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
12. Avolta AG (OTC:DUFRY)
Market cap as of February 12: $6.61 billion
In November 2023, the business, which had previously been known as Dufry AG, changed its name to Avolta AG (OTC:DUFRY). Founded in 1865, Avolta AG has its main office in Basel, Switzerland. Avolta leads the travel retail industry and operates the biggest duty-free store globally. More than 80% of the company’s (Avolta and purchased Autogrill) total revenue comes from airports. Europe and the Americas are the company’s primary markets, with Asia accounting for 4% of total sales in 2023.
Avolta AG (OTC:DUFRY) announced impressive Q3 and year-to-date results, continuing its seven-quarter growth trend. The company’s first nine months of 2024 observed a 6.8% like-for-like growth in revenue, reaching $10.48 billion. The EBITDA margin increased by 40 basis points to 9.9% due to cost management, operational efficiency, and solid demand. Equity-free cash flow exceeded forecasts, rising 46% YoY to $445 million. The company continues to be highly diversified across business lines and regions, with notable expansion in North America, Asia Pacific, and EMEA. Avolta’s net leverage fell to 2.16x, the lowest level in 14 years, with 1.5x to 2x being its medium-term goal.
As part of its Destination 2027 plan, Avolta AG (OTC:DUFRY) is concentrating on digital transformation, hybrid retail ideas, and consumer-centric activities. It has opened 34 hybrid stores thus far, with 40 more planned, and introduced a new loyalty program called Club Avolta.
11. Aeroports de Paris SA (OTC:AEOXF)
Market cap as of February 12: $11.39 billion
Aeroports de Paris SA (OTC:AEOXF) is a French airport operator. The group has interests in a number of international airports, including a portfolio of Turkish airports through its ownership of TAV Airports and a 31% indirect stake in Indian airports in Hyderabad and New Delhi through its recent acquisition of GMR Airports. It also owns the three commercial airports in Paris: Charles de Gaulle, Orly, and Paris-Le Bourget.
Aeroports de Paris SA (OTC:AEOXF) generates both regulated and unregulated revenue. Regulated revenue comprises takeoff and landing fees, passenger fees, and security, whereas nonregulated revenue comes from commercial operations like retail, food and beverage, and advertising sales. The group served 108 million people in 2019 via its network of airports in Paris.
Aeroports de Paris SA (OTC:AEOXF) provides diverse exposure to airports in Paris, India, and Turkey, with considerable revenue growth fueled by TAV Airports and international traffic. During the first nine months of 2024, revenues increased 11.7% to €4.6 billion, while overall traffic increased 8.1%. Passenger traffic at Paris’ airports increased by 3.8%. France’s traffic fell 5%, which is consistent with the trend that more domestic flights are either too expensive for airlines to operate or must be replaced by rail. Traffic in Europe rose by 3.6%, while traffic in other countries increased by 7.2%. The Asia-Pacific area had a notable increase in traffic, with a 27.7% gain slightly offset by a 5.4% fall in traffic to the Middle East as a result of regional upheaval. TAV Airports had an 11.7% rise in traffic, which increased revenues by €252 million. This shows TAV Airports is responsible for more than half of the revenue growth. The remaining €137 million comes from greater retail and services revenues due to a 5.6% rise in retail sales per passenger and €87 million from higher aviation revenues due to growing traffic in Paris.
The company is also acquiring businesses and growing its Extime hospitality brand to diversify and profit from luxury services and tourism.
10. Airports of Thailand Public Company Limited (OTC:AIPUY)
Market cap as of February 12: $23.08 billion
Airports of Thailand Public Company Limited (OTC:AIPUY) manages airports and offers aviation-related services. Both domestic and international flights are served by its airports in Thailand. The company works in a number of business areas, including ground aviation services, hotel management, airport management, security, and perishable commodities projects. Most of its revenues come from its airport management company, which mainly generates revenue through two types of services: nonaeronautical and aeronautical. Air traffic, including landing and parking fees and passenger and aircraft service fees, is linked to aeronautical revenue. Nonaeronautical revenue comes from office and state property rentals.
Thailand’s airports have seen excellent development, and Airports of Thailand Public Company Limited (OTC:AIPUY) witnessed a 54% gain in revenue in FY2024, although the domestic passenger counts were unchanged and domestic aircraft movements were down 1.8%. While international passenger numbers increased by 40%, international movements climbed by about 34%. This results in a 15.5% overall increase in aircraft movements and a 21.2% rise in passenger volume. Despite static domestic passenger numbers and aircraft movements, EBITDA grew significantly.
The most obvious danger for airports is a drop in travel demand, which could be caused by a macroeconomic downturn or a worsening in political stability. As we have seen during the pandemic, health emergencies are one type of remote risk. Nonetheless, the government’s initiatives focused on promoting tourism and the ongoing restoration of passenger volumes and aircraft movements to pre-pandemic levels present opportunities for Airports of Thailand Public Company Limited (OTC:AIPUY).
9. Aena S.M.E. S.A. (OTC:ANYYY)
Market cap as of February 12: $3.71 billion
Aena S.M.E., S.A. (OTC:ANYYY) is a Spanish airport operator that owns interests in several international airports in addition to several Spanish airports, such as Madrid and Barcelona. The business makes both regulated and unregulated revenue. Nonregulated revenue comes from commercial operations, including retail, food and beverage, and advertising sales, while regulated revenue comes from takeoff and landing fees, passenger fees, and security. The following segments consist of the Group’s business operations: Airports; Region de Murcia International Airport (AIRM); International; Real estate services.
Although operational expense growth is still in the low-digit range, Aena S.M.E., S.A. (OTC:ANYYY)’s first half of 2024 results were remarkable, and the third quarter of 2024 expanded by 14.43% YoY. This gain was mostly explained or driven by aeronautical and commercial revenues, which rose by 14.6% and 16.6%, respectively. It showed a good top-line growth as well, further boosting the EBITDA margins.
Aena S.M.E., S.A. (OTC:ANYYY) is well-positioned to benefit from the ongoing increase in demand for air travel due to its combination of Spanish and Brazilian airports as well as, to a lesser extent, London-Luton. The company is now positioned for high-margin expansion as its top line is increasing by double digits while its costs are only growing by low single digits.
To boost commercial profits, the company can raise rates, enhance its retail offering, and capitalize on the ongoing demand for air travel. Aena S.M.E., S.A. (OTC:ANYYY) was awarded the concession to run São Paulo-Congonhas Airport and ten other airports in Brazil for 30 years in 2022, which could lead to further expansion for the business.
8. Corporación América Airports S.A. (NYSE:CAAP)
Number of Hedge Fund Holders: 2
Airport concessions are purchased, developed, and administered by Corporación América Airports S.A. (NYSE:CAAP). Argentina, Italy, Brazil, Uruguay, Ecuador, and Armenia are the geographical divisions of its operating segments. The Argentina segment accounts for the majority of the company’s revenue. Aeronautical, non-aeronautical, commercial, construction service, and other revenue are the several categories into which the company’s revenue is divided.
In December 2024, Corporación América Airports S.A. (NYSE:CAAP) reported a 3.2% year-over-year growth in passenger traffic, including an 11.4% increase in international traffic. The overall passenger traffic increased by 6.6% when the consequences of the Natal Airport’s ceased operations were taken out of the equation. Strong domestic traffic recovery and notable international traffic increase propelled Argentina’s monthly passenger traffic to an all-time high. Performance varied by country, with Argentina and Italy exhibiting strong growth and Brazil declining as a result of fewer operations at Natal. A favorable trend in operational metrics was highlighted by a 9.3% year-over-year increase in cargo volume and a 2.5% increase in aircraft movements.
Corporación América Airports S.A. (NYSE:CAAP)’s significant regional diversification has helped to minimize Argentina’s macroeconomic issues, with solid performances in Uruguay, Brazil, and Italy contributing to EBITDA growth. Lower passenger volumes and poorer duty-free sales caused a fall in revenue; yet, the company’s strong cash flow generation and sound balance sheet offer a strong basis for future growth. Management’s dedication to long-term growth is proven by strategic investments such as the Florence Airport master plan, the Capex program in Armenia, and the commercial upgrades at Carrasco and Ezeiza Airports. Additionally, revenue will be greatly increased by Argentina’s recent 124% rise in domestic passenger use fees, which went into effect on November 1.
The company’s long-term perspective and position are further strengthened by hints of macroeconomic stabilization, robust October international passenger numbers, and cautious capital allocation.
Griffin’s Citadel Investment Group was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 29,300 shares worth $511,578 as of Q3.
7. Grupo Aeroportuario del Sureste S. A. B. de C. V. (NYSE:ASR)
Number of Hedge Fund Holders: 6
ASUR, also known as Grupo Aeroportuario del Sureste SAB de CV (NYSE:ASR), is a Mexican firm that has the concessions to run, oversee, and develop nine airports in the country’s southeast. The company runs six airports in northern Colombia, including the country’s second-busiest airport, Medellín International. The business also owns 60% of the capital stock of Aerostar Airport Holdings, LLC, which operates the Luis Muñoz Marin International Airport in Puerto Rico’s capital, San Juan. The airport is an important entrance point for both international flights to the island and continental flights from the United States.
Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) has a stable financial position, a strategic focus on tourism, and a variety of revenue streams beyond airport operations. Despite varying passenger volumes, the firm’s steady revenue growth, careful debt management, and dividend recovery indicate its determination and potential for long-term value growth. The company’s advantageous locations in prominent tourist sites, along with high entry barriers, provide it with a profit edge and opportunities for future growth.
Grupo Aeroportuario del Sureste, S. A. B. de C. V. (NYSE:ASR) reported that it carried 6.4 million passengers in previous year, a 1.7% increase over the same period in 2024. The main drivers of this growth were the significant improvements in Puerto Rico and Colombia, which experienced rises of 9.3% and 12.3%, respectively, while Mexico suffered a 4.1% fall. The fluctuations in passenger traffic imply varying dynamics among regions, which could have an impact on the company’s strategic focus and resource allocation.
Jim Simons’s Renaissance Technologies was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 95,283 shares worth $26.94 million as of Q3.
6. Wheels Up Experience Inc. (NYSE:UP)
Number of Hedge Fund Holders: 8
Market capitalization as of February 12: $997.87 million
In the US, Wheels Up Experience Inc. (NYSE:UP) offers private aviation services on demand. It is leading the way in data-driven and technology-driven solutions that link customers with private aircraft that have been confirmed and approved for safety. It connects private flyers to aircraft and one another via an open platform, allowing them to share life’s most essential experiences. It provides a combination of scheduled and charter options, making strategic use of its fleet of owned and leased aircraft as well as an “asset-light” charter strategy to provide a wider range of international travel options. Private aviation services is the company’s sole operational and reportable segment. Geographically, the United States accounts for the majority of the company’s revenue.
Wheels Up Experience Inc. (NYSE:UP)’s third-quarter earnings were steady, with sequentially flat revenue of $194 million. It is actively updating its fleet with more modern, efficient aircraft, such as the Challenger and Phenom, which will lower operating costs and increase operational dependability.
The business purchased a fleet of 17 Phenom aircraft from GrandView Aviation to speed up the transition process. Wheels Up Experience Inc. (NYSE:UP) will become the world’s largest supplier of on-demand Phenom aircraft as a result of this transaction. Over the following three years, it intends to gradually phase out its older jets and swap them out for the new Phenom and Challenger aircraft.
Making the switch to Embraer Phenom 300 and 300E aircraft is part of this. By doing this, three distinct fleets will be combined into one, streamlining operations and cutting expenses. They also intend to retain their King Air fleet while replacing its Citation X fleet with Bombardier Challenger 300 and 350 aircraft.
Tom Wagner And Ara Cohen’s Knighthead Capital was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 258.13 million shares worth $624.77 million as of Q3.
5. Grupo Aeroportuario del Pacífico S.A.B. de C.V. (NYSE:PAC)
Number of Hedge Fund Holders: 8
Market capitalization as of February 12: $9.86 billion
Airport development, building, and operation in Mexico are the activities of Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE:PAC). San Jose del Cabo, Montego Bay, Hermosillo, Guanajuato, Guadalajara, Tijuana, Puerto Vallarta, and other airports are also part of the company’s section. It derives the most revenue from the Guadalajara segment.
Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE:PAC) released preliminary terminal passenger traffic numbers for January, compared to same period last year. In January 2025, GAP’s 12 Mexican airports reported a 6.3% YoY increase in terminal passengers overall. The passenger traffic at the airports in Guadalajara, Tijuana, Puerto Vallarta, and Los Cabos increased by 9.9%, 5.2%, 1.9%, and 0.6%, respectively, in comparison to January 2024. However, when compared to the same period last year, Montego Bay showed a 7.3% drop in passenger traffic.
In Q3 2024, the company’s overall revenues increased by 11.4% year over year, led by a 6.4% growth in aeronautical and non-aeronautical services revenues. Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE:PAC) noticed a 38.7% jump in non-aeronautical revenues, mainly from the consolidation of the cargo and free trade zone business at Guadalajara Airport in July 2024. Although there was an overall drop in aeronautical revenues due to lower passenger traffic, which was primarily caused by Pratt & Whitney A320neo and A321neo engine reviews that affected Volaris and VivaAerobus. The comprehensive income grew 2.7%, while EBITDA expanded 5.6%. By refinancing credit facilities and issuing long-term bonds in cash and cash equivalents, the company significantly improved liquidity and maintained a good financial position.
Jim Simons’s Renaissance Technologies was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 518,800 shares worth $90.28 million as of Q3.
4. Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (NASDAQ:OMAB)
Number of Hedge Fund Holders: 9
A major participant in Mexico’s airport industry, Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) presents an appealing investment opportunity because of its monopoly-like position, steady double-digit earnings growth, and outstanding shareholder returns. Since becoming public in 2006, OMAB has operated 13 airports, with a portfolio that includes major hubs, popular tourist attractions, and smaller cities throughout northern Mexico. The company has a track record of generating a 16.8% annual total return. These airports are essential to the Mexican economy because they give investors access to a crucial component of the infrastructure that supports trade and tourism in the whole country.
The company’s growth possibilities are related to the Master Development Program (MDP), which requires it to provide traffic forecasts, capital investment plans, and maintenance projections every five years. The business can increase the fees it charges airlines and passengers in return for this investment, which offers a clear way to increase revenue. Inflation and rising demand for airport services are expected to result in higher charges under the next MDP, which is scheduled to go into force in 2026. Since air traffic has grown historically and Monterrey Airport is expected to become a regional hub, Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB)’s revenue base should rise more quickly than traffic alone.
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) is in a unique position in the airport business due to its monopoly-like operations, which are supported by advantageous government contracts. Since the firm has no direct rivals for the airports it oversees, it has considerable pricing power in contrast to airlines, which are subject to fierce competition. Additionally, the business performs well in both prosperous and struggling times due to its capacity to increase costs in accordance with inflation without alienating clients. It maintained favorable returns despite the difficulties of 2020, proving the strength of its business strategy.
Jim Simons’s Renaissance Technologies was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 211,700 shares worth $14.36 million as of Q3.
Middle Coast Investing stated the following regarding Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) in its Q3 2024 investor letter:
“We added meaningfully to our Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (NASDAQ:OMAB) (Central North Airport Group in Mexico) position. A year ago, shares of this and PAC (Pacific Airport Group) plunged on government regulation concerns, but also a hurricane hitting Acapulco (OMAB runs the airport) and plane engine issues for the major Mexican airline, Volaris.
We start to lap those issues in October and November, meaning comparisons get easier for the business. Mexico also has a new president, Claudia Sheinbaum. She is from the same political party, and that party has a supermajority and is ramming through a controversial judicial reform. But I expect her to be less contentious and more technocratic than her predecessor, Andreas Manuel Lopez Obrador (AMLO) [3]. And PAC recently announced (PDF) its new Master Development Plan approved by the government, and while it calls for a lot of investment, it also has healthy tariff increases built in. I don’t think the government is “coming” for the airport businesses, and the share prices are more than reasonable.”
3. Blade Air Mobility Inc. (NASDAQ:BLDE)
Number of Hedge Fund Holders: 11
A technology-driven air mobility platform, Blade Air Mobility, Inc. (NASDAQ:BLDE) offers helicopter and fixed-wing services primarily in the Northeast United States, Southern Europe, and Western Canada. It also handles hospital air transportation and logistics, as well as the transportation of human organs for transplantation and passengers. Medical and Passenger are the company’s two operating segments. The company’s medical division, which primarily comprises the transportation of human organs for transplantation and the medical teams who support these services, generates the majority of its revenue. Coordination of donor logistics and assistance in assessing possible donor organs are among its other functions. The United States accounts for a sizable amount of the company’s revenue.
Blade Air Mobility, Inc. (NASDAQ:BLDE) is positioned for long-term growth as a result of its shift to positive cash flow and higher profit margins. Higher profitability has resulted from the company’s successful exit from low-margin operations, especially in its passenger division. It is getting closer to breakeven on a GAAP basis as adjusted EBITDA starts to turn positive, and a double-digit EBITDA margin is anticipated in 2025. With $136 million in cash and no debt, its solid balance sheet offers room for future share repurchases and additional investments in its fleet of medical aircraft. Furthermore, the company’s medical transport business, which is projected to grow at a double-digit rate in 2025, benefits greatly from the expanding organ transplant industry, which is strengthened by legislation reforms and advancements in perfusion technology.
The development of eVTOL (electric vertical takeoff and landing) aircraft has the potential to transform urban air travel and greatly improve Blade Air Mobility, Inc. (NASDAQ:BLDE)’s passenger operations in the long run. Although widespread adoption of eVTOL is still a few years away, the business has a competitive advantage due to its early positioning in this market. Its medical logistics division is strengthened by its strategic alliance with OrganOx, which raises the prospect of further revenue growth.
2. Joby Aviation Inc. (NYSE:JOBY)
Number of Hedge Fund Holders: 12
A vertically integrated air mobility firm, Joby Aviation, Inc. (NYSE:JOBY) is working on developing an electric vertical take-off and landing aircraft that is best suited to provide air transportation as a service in the United States and Dubai. Instead of focusing on individual ownership, the company offers transportation options as a service.
Wall Street believes that by taking advantage of strategic opportunities in the quickly expanding advanced air mobility (AAM) industry, a successful collaboration with Mukamalah Aviation in Saudi Arabia should increase Joby Aviation, Inc.’s (NYSE:JOBY) revenue. A key component of its commercialization strategy is the direct sale of aircraft to government partners like the US Department of Defense and business clients like Mukamalah.
The capital infusion should provide Joby Aviation, Inc. (NYSE:JOBY) with the necessary financial management for increased production and ongoing R&D initiatives. Successful launches in places like Saudi Arabia and Dubai should then operate as a proof of concept for the business’s eVTOL technology, possibly drawing in more partners and clients from around the globe.
As Joby Aviation, Inc. (NYSE:JOBY) builds a reputation for operating well in a variety of environments, it should be able to negotiate better terms with authorities and other possible customers. The technical expertise, market standing, and advancement in FAA certification of the firm should all continue to be strong. Recent successes for the company, such as the early delivery of its first eVTOL to Edwards Air Force Base, boost trust.
1. AerSale Corporation (NASDAQ:ASLE)
Number of Hedge Fund Holders: 15
In the field of aircraft aftermarket goods and services, AerSale Corporation (NASDAQ:ASLE) is a diverse, comprehensive leader. The company offers a wide range of maintenance, repair, and overhaul services as well as engineering services for commercial aircraft and parts, and it specializes in the sale, leasing, and exchange of secondhand aircraft, engines, and parts. TechOps and Asset Management Solutions are part of the company’s operating segment. The Asset Management Solutions segment yields the highest revenue.
In AerSale Corporation (NASDAQ:ASLE)’s Q3 2024, the growth of the lease pool resulted in a considerable rise in leasing revenue, in line with strategy aims. Strong growth in the MRO business also contributed to the segment’s 18% year-over-year gain. While Engineered Solutions reported continued sales prospects for AerSafe and strong client interaction for AerAware, the TechOps division did well, with sales increasing 17.6% to $32.3 million. Financially, adjusted net income increased from $0.9 million to $1.8 million, while adjusted EBITDA improved from $1.9 million to $8.2 million in 2023 due to lower operating expenses and higher gross margins. Projects to expand MRO facilities in Millington and Miami are still on schedule for Q1 2025, which should increase profits.
Meanwhile, AerSale Corporation (NASDAQ:ASLE) is in talks with a number of potential customers, and the AerSafe backlog is anticipated to double by the 2026 regulatory deadline. The company appears to have learned that it needs to position itself to perform more regularly, which is a positive. Aircraft and engine sales cause profits to fluctuate every quarter and year. The firm is now working to lessen this impact by expanding its MRO presence, which is essential given the challenging position it is now in with AerAware. That product may eventually prove successful, but the company and its stockholders are waiting to see when the first signals of commercial success appear.
Overall, ASLE ranks first on our list of the 12 Best Airport Stocks to Invest in Now. While we acknowledge the potential for ASLE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ASLE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. 12 Best Airport Stocks to Invest in Now is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
