5 Best Airline Stocks to Buy for 2021

4. American Airlines Group Inc (NASDAQ: AAL)

American Airlines is the world’s largest airline by scheduled revenue passenger miles. The airline said on Dec. 23 that it is moving ahead with plans to recall it furloughed workers. About 8,000 American Airlines’ flight attendants have already received recall letters, it added. American Airlines’ revenue in the third quarter fell 73% as the company swung to a net loss of $2.4 billion, compared to $425 million profit a year earlier.

Earlier in December, American Airline shares gained value after BlackRock Inc. disclosed that it owns 29,008,081 shares of the company, representing a a 4.8% stake.

American Airlines recently added about 2,300 new flights to the Caribbean and Latin American, citing an anticipated increased demand in 2021. It also increased its number of available seats by over 8% systemwide.

Insider Monkey’s database shows that 37 hedge funds are bullish on the company as of the third quarter, down from 47 in the second quarter of 2020. Here is what McLain Capital said about AAL in June:

“American Airlines (AAL) : With a $6.5bln market cap & adjusting for the current cash burn & incremental net debt, American currently trades at a higher pro-forma enterprise value than it did at the beginning of the year, while revenues are off 80-90%. The two year notes, AAL 5% 6/2022, currently trade 52 cents on the dollar at a yield to maturity of 46%, implying zero equity value for the common stock. At it’s current projected pace of cash burn, the company will expend its current liquidity before year end. American is one of the most popular stocks among retail investors.”