12 Best Aviation Stocks to Buy According to Hedge Funds

4. American Airlines Group Inc. (NASDAQ:AAL)

Number of Hedge Fund Investors: 41

American Airlines Group Inc. (NASDAQ:AAL) is the world’s largest airline by aircraft, capacity, and scheduled revenue passenger miles, making it among the best airline stocks. Its major US hubs are Charlotte, Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York, Philadelphia, Phoenix, and Washington, D.C. It generates more than 30% of US airline revenue by connecting Latin America to destinations in the United States. After a major fleet renewal, the company has the youngest fleet of US legacy carriers.

American Airlines Group Inc. (NASDAQ:AAL)’s Q3 of 2024 sales of $13.6 billion were a record, growing by 1.2% over the previous year.  Revenue improved as a result of outstanding operational performance, high flight completion rates, and successful renewals of contracts with leading travel agencies and corporate clients, which improved business travel demand. Operating cash flow grew by 377.59% YoY. In Q3 of 2024, the company cut its total debt by about $360 million, moving closer to its 2025 debt reduction target of $15 billion.

Morgan Stanley increased American Airlines Group Inc. (NASDAQ:AAL)’s price objective from $18 to $22. The firm stated that “the bar is probably the highest it has been since the pandemic,” and is optimistic about U.S. Airlines in 2025. The analyst informs investors that the firm forecasts that demand will continue to be strong, with volume growth and the strength of the premium mix continuing, particularly as the corporate and international ramps finish the pandemic recovery.

Ken Griffin’s Citadel Investment Group was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 24.50 million shares worth $275.33 million as of Q3.