In this article, we will discuss: 12 Best Aviation Stocks to Buy According to Hedge Funds.
Aviation stocks are the shares of firms in the aviation industry, such as airlines, aircraft manufacturers, and airport operators.
The global lockdowns triggered by the pandemic caused significant disruptions to the travel industry. According to the International Air Transport Association (IATA), air travel worldwide decreased by 60% in 2020 as a result of the significant disruptions caused by the COVID-19 pandemic. There were only 1.8 billion passengers flying through 2020, down from almost 4.5 billion in 2019, according to the International Civil Aviation Organization (ICAO), while seating capacity dropped by about 50% in 2020.
Despite these challenges, the airline industry has regained stability as lockdowns have lifted and normalcy has returned. Verified Market Size estimated that the global airline market will increase at a compound annual growth rate (CAGR) of 3.21% from 2024 to 2031, from a 2023 valuation of $569.02 billion to $732.66 billion. The industry is mostly driven by the development of fuel-efficient aircraft and the use of sustainable aviation fuel (SAF). The Federal Aviation Administration (FAA) of the United States claims that the implementation of SAF could cut aviation emissions by as much as 80%, supporting the industry’s sustainability objectives and reducing operating expenses.
Currently, airlines are facing record demand. According to AAA, nearly 80 million people were anticipated to travel by road and air this Thanksgiving, with the number of travelers exceeding pre-pandemic levels. Seat occupancy on airplanes has increased from 74% in 2003 to 84% in the first ten months of this year. The seat occupancy rate jumped from 69% in 2004 to 79% this year, even during slower months like January. According to the Consumer Price Index, airfares rose by more than 10% between July and October as a result of the limited availability. Reduced competition and flight cuts by budget carriers, such as a 10% holiday reduction, have further reduced availability, raising prices and reducing the number of reasonably priced options.
U.S. Airlines and Aircraft Leasing Analyst Jamie Baker of J.P. Morgan claims,
“Our prevailing thesis is that demand for premium and international air travel continues to lead the market.”
The International Air Transport Association (IATA) forecasts that airlines will transport about 5 billion passengers by 2024. According to IATA’s 2024 forecasting, airlines should report net earnings of $30.5 billion this year, up from $25.7 billion in December. It was estimated that the industry’s overall revenues would increase by over 10% to a record $996 billion. The projected profit “is a great achievement considering the recent deep pandemic losses,” IATA Director General Willie Walsh said while addressing the annual general assembly of the trade association in Dubai. According to IATA, which has more than 300 members and accounts for 83% of all air traffic globally, North American airlines are expected to generate about half of all profits in 2024, with a projected surplus of $14.8 billion, while European airlines are expected to see an increase in profits of between $8.6 billion and $9 billion.
According to the International Air Transport Association (IATA), industry revenues will exceed $1.007 trillion, a 4.4% rise from 2024, and cross $1 trillion for the first time in 2025. It is projected that the number of passengers will reach 5.2 billion, which would be another significant milestone in the industry’s post-pandemic recovery.
Willie Walsh, IATA’s Director General stated:
“Looking at 2025, for the first time, traveler numbers will exceed five billion and the number of flights will reach 40 million. This growth means that aviation connectivity will be creating and supporting jobs across the global economy. The most obvious are the hospitality and retail sectors which will gear up to meet the needs of a growing number of customers. But almost every business benefits from the connectivity that air transport provides, making it easier to meet customers, receive supplies, or transport products. On top of this, growth in aviation also contributes to achieving almost all the UN’s Sustainable Development Goals (SDGs),”
With that said, here are the 12 Best Aviation Stocks to Buy According to Hedge Funds.
A commercial jetliner parked at an airport, reflecting the companies success in aviation.
Methodology:
We sifted through holdings of Airline ETFs and online rankings to form an initial list of 20 Aviation 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 Revenue Growth Rate (year-over-year) as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
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12. Frontier Group Holdings Inc. (NASDAQ:ULCC)
Number of Hedge Fund Investors: 15
Revenue Growth Rate (year-over-year): 7.91%
The mission of Frontier Group Holdings, Inc. (NASDAQ:ULCC), an ultra-low-cost airline, is Low Fares Done Right. There are 120 Airbus single-aisle aircraft in the company’s fleet, including 13 A320ceos, 82 A320neos, 21 A321ceos, and 4 A321neos. These aircraft’s utilization, seating arrangement, weight-saving strategies, and luggage handling have all helped the United States maintain its position as the most fuel-efficient in the world. One of the best airline stocks, Frontier Group Holdings Inc. (NASDAQ:ULCC), which offers passenger air transportation, is run as a single business unit.
In Q3 2024, Frontier Group Holdings, Inc. (NASDAQ:ULCC) reported a 6% YoY increase in sales to $935 million, along with improved liquidity and a 2.9% pre-tax income margin. Improved revenue strategies, expanded capacity, and a slowdown in industry capacity growth in the latter half of the quarter all contributed to the revenue rise. Highlights include improved financing capacity, fleet growth with five A321neo aircraft, and a 6% cost reduction per seat mile.
The business anticipates a revenue increase in Q4 2024, driven by capacity reduction, network redeployment, and loyalty program enhancements, with fuel costs estimated at $2.45-$2.50 per gallon.
Michael Linenberg, an analyst at Deutsche Bank, raised Frontier Group Holdings, Inc. (NASDAQ:ULCC) price target from $6 to $8 on December 11, 2024, and upgraded the stock from Hold to Buy. The analyst informed investors in a research note that the company is well-positioned to profit from an improving domestic market because 94% of its March quarter capacity was deployed in domestic markets. According to the firm, Frontier’s recent announcement that it will launch a first-class product in 2025 will enable it to increase its market share and complement its other premium offering, UpFront Plus, which will be moved a few spots behind first class.
Leonard A. Potter’s Wildcat Capital Management was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 28 million shares worth $150.13 million as of Q3.
11. Sun Country Airlines Holdings Inc. (NASDAQ:SNCY)
Number of Hedge Fund Investors: 15
Revenue Growth Rate (year-over-year): 17.35%
One of the Best Airline Stocks, Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY), operates low-cost carriers. The company runs in two segments: Cargo and Passenger. Scheduled service and charter are the two internal passenger groupings in the passenger segment. Air cargo services are offered by the Cargo segment. The passenger segment generates the lion’s share of revenue.
With a record third-quarter revenue of $249 million, Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) had a 0.24% YoY increase. Despite obstacles like the Crowdstrike outage and hurricanes that affected operations, cargo revenue grew by 11.9% year over year, while charter revenue grew by 7.0%. For the ninth consecutive quarter, the business was profitable, with GAAP diluted EPS of $0.04 and adjusted EPS of $0.06.
The price objective for Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) was increased by Barclays from $20 to $24 on November 14, 2024. According to the firm, airline fundamentals will “turn sharply positive” in 2025 and would probably lead to a “much more favorable market perception for the group,” which might allow for significant share price growth for the leaders in the industry, such as Delta, United, and Alaska. In a research note, the analyst warns investors that a “powerful rally in airline equities looking into next year” may be fueled by the convergence of strengthening airline fundamentals and market optimism. The “winners will keep winning,” according to Barclays. As capacity growth slows in 2025, low-cost carrier rivalry shifts and the “moats grow deeper for the winners in the industry,” the company argues that airlines offer substantial upside potential.
Paul Reeder And Edward Shapiro’s PAR Capital Management was the largest stakeholder in the company from among the funds in Insider Monkey’s database at the end of Q3 2024. It owns 2.5 million shares worth $28 million as of Q3.
10. Air Transport Services Group Inc. (NASDAQ:ATSG)
Number of Hedge Fund Investors: 16
Air Transport Services Group, Inc. (NASDAQ:ATSG), a leading provider of aircraft leasing and air transportation services, specializes in medium wide-body freighter aircraft. Through its varied companies, it provides a distinctive Lease+Plus aircraft leasing possibility within the aviation industry. The North American and European markets account for the majority of the company’s sales. It is among the best airline stocks, having increased by more than 32% so far this year.
In the third quarter of 2024, Air Transport Services Group, Inc. (NASDAQ:ATSG)’s free cash flow improved dramatically, going from a negative $51.6 million to $86.4 million. Operating cash flow increased 15.35% year over year. Additionally, the business declared a final deal to be bought out by alternative investment firm Stonepeak for all cash for about $3.1 billion.
Air Transport Services Group, Inc. (NASDAQ:ATSG)’s leasing division benefited from strong demand, with four Boeing 767-300 freighter leases signed in the third quarter. However, third-quarter profitability was impacted by higher expenses and fewer block hours flown. By the end of 2024, the firm intends to sign three additional leases for freighters owned by CAM and expects significant benefits in its ACMI Services division as a result of contractual price increases.
On November 5, 2024, Air Transport Services Group, Inc. (NASDAQ:ATSG) announced that it had entered into an acquisition agreement with Stonepeak for $22.50 per share. Truist analyst Michael Ciarmoli increased the firm’s price target for the business from $15 to $22.50. In a research note, the analyst informed investors that Stonepeak’s implied take-out multiple for the deal is 20% lower than peers’, but this is likely justified given recent operating performance, pilot union contract unknowns, and greater exposure to older freighter platforms as opposed to newer passenger variant aircraft.
John Osterweis’s Osterweis Capital Management 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 million shares worth $29.80 million as of Q3.
9. Copa Holdings S.A. (NYSE:CPA)
Number of Hedge Fund Investors: 17
Copa Holdings S.A. (NYSE:CPA) provides aircraft passenger and freight services through its subsidiaries. The company’s primary business is air transportation. It provides international air transportation for passengers, cargo, and mail from its Panama City hub in the Republic of Panama, as well as domestic and international air transportation for passengers, cargo, and mail via a point-to-point route network with Copa Colombia, a Colombian carrier. North America, South America, Central America, and the Caribbean are the company’s geographic divisions. North America accounts for the majority of the company’s revenue.
The passenger traffic, as measured by revenue passenger miles, increased by 7.6% YoY in Q3 of 2024 during the quarter, while consolidated capacity, as measured by available seat miles, grew by 9.5% YoY.
Copa Holdings S.A. (NYSE:CPA) ended the quarter with 110 aircraft, including a freighter and many Boeing 737 variants, including one Boeing 737 MAX 8. The airline company had a remarkable on-time record of 87.3% and a flight completion factor of 99.6%, placing it among the best airline stocks.
A number of considerations that highlight Copa Holdings S.A.’s (NYSE:CPA) excellent performance trajectory have led Jens Spiess to issue his Buy rating. The company reported a 6.8% year-over-year and a 6.6% quarter-to-date increase in overall traffic for November 2024. However, these numbers fall just short of Morgan Stanley’s and the market’s projections. Nevertheless, the business continues to have a strong position, as evidenced by its 8.1% year-to-date traffic growth and 8.8% capacity increase, both of which align with the company’s annual expectations. The overall capacity and planned increase indicate a stable forecast for the entire quarter, notwithstanding a minor year-over-year decline in the load factor for both November and the year thus far.
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 870,385 shares worth $81.68 million as of Q3.
8. SkyWest Inc. (NASDAQ:SKYW)
Number of Hedge Fund Investors: 27
SkyWest, Inc. (NASDAQ:SKYW) provides commercial flight services in the United States, Canada, Mexico, and the Caribbean. In order to contribute to revenue generation, it also rents aircraft to qualified users. The airline company generally offers regional flights and transports customers who purchased tickets through airlines using its smaller, less expensive aircraft. It collaborates with airlines throughout the world to fly and operate planes for a fee. The two reportable segments of the company are SkyWest Leasing and SkyWest Airlines.
SkyWest, Inc. (NASDAQ:SKYW)’s revenue grew 19% YoY to $913 million in the third quarter of 2024, fueled by a 15% increase in block hour production due to improved captain accessibility and the recognition of $19 million in previously deferred revenue under flying contracts. Net income increased from $23 million in Q3 2023 to $90 million in this quarter. The operating cash flow increased by 2.64% YoY.
TD Cowen maintained a Buy rating on SkyWest, Inc. (NASDAQ:SKYW) shares and increased their price target from $95 to $120 on November 5, 2024. According to the firm, management increased guidance for FY24 EPS and anticipates FY25 EPS to surpass previous consensus projections, and they produced yet another set of remarkable results.
Stephen White’s SW Investment Management was the largest stakeholder in the company among the funds in Insider Monkey’s database. It owns 775,000 shares worth $65.89 million as of Q3.
ClearBridge Small Cap Value Strategy stated the following regarding SkyWest, Inc. (NASDAQ:SKYW) in its Q2 2024 investor letter:
“We also added a new position in SkyWest, Inc. (NASDAQ:SKYW), a regional airline operator. The company reported strong quarterly earnings as its pilot attrition declines and fleet utilization improves. We believe that SkyWest continues to find opportunities to deploy capital in a value-accretive manner, acquiring more planes under long-term contracts. We think earnings should hold up in a potential recession and perhaps even improve further if major airlines reduce capacity and more pilots become available for SkyWest.”
7. JetBlue Airways Corporation (NASDAQ:JBLU)
Number of Hedge Fund Investors: 28
Revenue Growth Rate (year-over-year): 4.99%
JetBlue Airways Corporation (NASDAQ:JBLU) is a budget airline that provides excellent services, such as in-flight entertainment and assigned seating, making it one of the best airline stocks. It provided service to around 100 locations in the US, the Caribbean, Latin America, Canada, and England. Aircraft types currently operated by the firm include the Embraer E190, Airbus A320, Airbus A321, and Airbus A321neo. The company’s operating segments include Atlantic, Caribbean & Latin America, and Domestic & Canada. The Domestic & Canada division generates the majority of revenue.
In Q3 of 2024, JetBlue Airways Corporation’s (NASDAQ:JBLU) revenue increased by 0.51% YoY because of strong demand during peak hours, improved close-in bookings, and lower competitive capacity in the Latin area. The company achieved a 4.3% year-over-year increase in unit revenue, improved its adjusted operating margin by about five points, and secured about $4.1 billion in liquidity while continuing initiatives like sustainable aviation fuel supply agreements and structural cost savings. These accomplishments were all part of the firm’s significant progress on its JetForward strategy.
Brandon Oglenski, an analyst at Barclays, increased the price objective for JetBlue Airways Corporation (NASDAQ:JBLU) from $5 to $7. According to the company, airline fundamentals will “turn sharply positive” in 2025 and would probably lead to a “much more favorable market perception for the group,” which might allow for significant share price growth for the leaders in the sector, Delta, United, and Alaska. In a research note, the analyst warned investors that a “powerful rally in airline equities looking into next year” may be fueled by the convergence of strengthening airline fundamentals and market optimism. The “winners will keep winning,” according to Barclays. As capacity growth slows in 2025, low-cost carrier rivalry shifts and the “moats grow deeper for the winners in the industry,” the company argues that airlines offer substantial upside potential.
Carl Icahn’s Icahn Capital LP was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 17.78 million shares worth $116.29 million as of Q3.
6. Alaska Air Group Inc. (NYSE:ALK)
Number of Hedge Fund Holders: 28
Revenue Growth Rate (year-over-year): 8.09%
Alaska Air Group, Inc. (NYSE:ALK) has three operating segments and two airlines: Horizon and Alaska. The Mainline portion provides scheduled air service for passengers and freight throughout the United States, as well as parts of Mexico and Costa Rica, using Alaska’s Boeing and Airbus jet aircraft. The Regional segment consists of scheduled passenger air transportation provided by Horizon and other third-party carriers under capacity purchase agreements on a shorter-distance network throughout the United States and Canada. The capacity sold to Alaska under a CPA is included in the Horizon category. In addition to ticket breakage and net of taxes and fees, it also generates revenue from passenger supplementary services and Mileage Plan passengers. With a noteworthy YTD return of more than 64%, it is among the best airline stocks.
Alaska Air Group, Inc. (NYSE:ALK)’s revenue rose 8.21% YoY in the third quarter of 2024 as a result of strong booking trends, especially in the Pacific Northwest and Latin America, and resurgent corporate demand that led to close-in booking yield gains. Premium revenue outperformed, with first and premium class revenue increasing by 10% and 8% year on year, respectively, because of increased premium seating capacity.
Ken Griffin’s Citadel Investment Group was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 3.15 million shares worth $142.35 million as of Q3.
5. Southwest Airlines Co. (NYSE:LUV)
Number of Hedge Fund Investors: 36
One of the best airline stocks, Southwest Airlines Co. (NYSE:LUV) is the largest domestic airline in the United States in terms of passenger volume. It has an all-Boeing 737 fleet with about 800 aircraft. The airline company primarily focuses on short-haul, recreational flights that are operated in a single, open-seating cabin arrangement in a point-to-point network. However, it does provide some longer routes and a few benefits for business travelers. In 2025, the business plans to improve its ticketing system to provide allocated seats and make cabin modifications to provide select seats with additional legroom.
Approximately 85% of overall revenue comes from passengers, whilst just 5% comes from cargo and freight. Travel packages and other services account for the remaining 10%.
Operating revenues during the third quarter of 2024 hit a record $6.9 billion, up 5.3% from the previous year, while passenger revenue increased by 5.7% year over year to $6.3 billion. Successful tactical measures fueled this increase and yielded improvements from industry capacity moderation. Overall, Southwest Airlines Co. (NYSE:LUV)’s revenue grew by 5.29% YoY in Q3 of 2024.
The firm’s price estimate for Southwest Airlines Co. (NYSE:LUV) was increased by Bernstein from $30 to $33. The company claims that Q4 guidance and early indications of the successful implementation of new strategies led it to raise its price target, but it is still on the sidelines because of fears about an aggressive buyback strategy and the ongoing risk that significant positive change would not materialize shortly.
Paul Singer’s Elliott Management was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 61.15 million shares worth $1.81 billion as of Q3.
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.
3. The Boeing Company (NYSE:BA)
Number of Hedge Fund Investors: 52
The Boeing Company (NYSE:BA) is a major defense and aerospace company. Commercial aircraft, military, space, and security, and global services are its three business segments. Boeing’s commercial jets division competes with Airbus in the development of aircraft that can seat more than 130 people. The company’s defense, space, and security division competes with Lockheed, Northrop, and numerous other companies to produce military aircraft, satellites, and weapons. Global Services provides aftermarket assistance to airlines.
The confidence in the overall demand for aerospace products is further strengthened by Boeing’s substantial backlog, which spans many years of manufacturing for the most popular aircraft.
The Boeing Company (NYSE:BA) is in serious financial trouble, having lost $6.17 billion in Q3 2024 and almost $8 billion so far this year. The firm’s losses have been made worse by production slowdowns, supply chain delays, and a recent seven-week labor strike that put a halt to important programs. Nonetheless, the business’s $500 billion backlog, which amounts to more than seven years’ worth of sales, suggests that there will be a strong demand for its commercial aircraft in the future. Kelly Ortberg’s appointment as CEO offers fresh leadership to enhance operational effectiveness and reset investor expectations. Continued execution of its defense programs, as well as backlog fulfillment, could support recovery and future growth.
Fidelity Dividend Growth Fund stated the following regarding The Boeing Company (NYSE:BA) in its Q3 2024 investor letter:
“Overweighting The Boeing Company (NYSE:BA) also worked against the fund. The stock returned about -16% the past three months, sliding considerably in late July, as Q2 financial results for the aerospace giant came up well short of Wall Street’s expectations amid bigger-than-anticipated losses in both its commercial aviation and defense businesses. In July, the firm named former Rockwell Collins CEO Kelly Ortberg as its new president and CEO in an effort to move past ongoing production issues, cost overruns and delivery delays.”
Ken Griffin’s Citadel Investment Group was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 5.58 million shares worth $848.85 million as of Q3.
2. United Airlines Holdings Inc. (NASDAQ:UAL)
Number of Hedge Fund Investors: 54
Major US network carrier United Airlines Holdings Inc. (NASDAQ:UAL) has hubs in New York/Newark, Los Angeles, Chicago, Houston, Denver, San Francisco, and Washington, D.C. United’s hub-and-spoke system is more geared toward long-haul and international travel than its major US competitors.
United Airlines Holdings Inc. (NASDAQ:UAL) has seen a significant YTD increase of over 133%, making it one of the best airline stocks.
Revenue in the third quarter of 2024 increased by 2.48% annually. United Airlines Holdings Inc. (NASDAQ:UAL)’s Q3 revenue growth was fueled by strong corporate demand, resilience in the premium and basic economy categories, and industry-wide capacity adjustments. The company surpassed profitability projections despite the CrowdStrike outage and unrest in the Middle East, which resulted in a 16% increase in the stock price and the approval of a $1.5 billion share repurchase program.
Deutsche Bank maintained its Buy recommendation on United Airlines Holdings Inc. (NASDAQ:UAL) shares and increased the price objective from $80 to $125. For 2025, the business suggests owning the airline sector leaders—American, Delta, and United—which account for the majority of the industry’s profits. As the airline company aims for profit accretion and margin expansion in the first year, “an outcome that is unheard of in any airline merger,” the analyst advised investors in a research note that they should also familiarize themselves with the Alaska merger tale in 2025. Additionally, Deutsche favored a number of “niche ideas” with small and mid-cap stocks, including JetBlue, SkyWest, and Sun Country. Deutsche Bank argues that although airline stocks are “beginning to get a bid,” values are still appealing, even for companies that have seen exceptionally high share price increases in 2024.
Ken Griffin’s Citadel Investment Group was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 5.79 million shares worth $330.15 million as of Q3.
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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
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.
