12 Best Aviation Stocks to Buy According to Hedge Funds

1. Delta Air Lines Inc. (NYSE:DAL)

Number of Hedge Fund Investors: 57      

One of the biggest airlines in the world and the best airline stock, Delta Air Lines Inc. (NYSE:DAL) is headquartered in Atlanta and operates a network of more than 300 destinations in more than 50 countries. Delta uses a hub-and-spoke network to gather and transport passengers around the world, with its main hubs in Atlanta, New York, Salt Lake City, Detroit, Seattle, and Minneapolis-St. Paul. Historically, passenger flights over the Atlantic Ocean have accounted for the majority of Delta’s international revenue and profits. It operates through airline and refinery segments.

In Q3 of 2024, Delta Air Lines Inc. (NYSE:DAL)’s revenue increased by 1.22% YoY. The revenue rise was driven by strong premium revenue, notably in local and international markets, as well as a 6% gain in loyalty revenue, which was driven by higher American Express remuneration. The overall performance was also influenced by a 7% rise in corporate sales and global demand, particularly in Latin America and the Transatlantic. Moreover, the operating cash flow jumped 18.40% year over year.

Ravi Shanker, an analyst at Morgan Stanley, increased his price objective for Delta Air Lines Inc. (NYSE:DAL) from $85 to $100. The firm’s Q4 and 2025 forecast met expectations, which is good, and the analyst informs investors that the early 2025 commentary “sounds very encouraging.” The analyst, who believes the event “should be an important turning point in how investors are likely to view the stock,” claims that Delta’s investor day “effectively drove home the message that they are different from peers (in more ways than just the premium product)” and also highlighted the strength and durability of the franchise.

Natixis Global Asset Management’s Harris Associates was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 12.62 million shares worth $641.17 million as of Q3.

Overall, Delta Air Lines Inc. (NYSE:DAL) ranks first on our list of the 12 Best Aviation Stocks to Buy According to Hedge Funds. While we acknowledge the potential for DAL 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 DAL 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 Aviation Stocks to Buy According to Hedge Funds 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.