Jim Cramer Talked About These 6 Airline Stocks

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

Number of Hedge Fund Holders: 57

Cramer said that Delta Air Lines, Inc. (NYSE:DAL) is “best of breed” and noted that the stock has gained quite a lot in the past several months.

“We need to talk about the remarkable run in the airline stocks over the past few months… Delta Airlines… we consider the best of breed, has soared nearly 70%.”

Delta (NYSE:DAL) is a major provider of air transportation services, catering to both passengers and cargo across a wide range of domestic and international routes. During its Investor Day, the airline projected strong sales growth in 2025, anticipating a boost in revenue due to a solid economy and continued demand for premium and international travel.

The company expects revenue to grow in the mid-teens in the coming year, though it also anticipates that costs, excluding fuel, will rise. Premium products have become an increasingly important source of revenue for it. The company reported that its premium offerings, including premium seats and its loyalty program, account for 57% of its overall revenue. In comparison, main cabin seating now represents 43% of Delta’s earnings. The company has also set a target to see sales from premium seats alone surpass revenue from coach seats by 2027.

Delta (NYSE:DAL) President, Glenn Hauenstein, has previously discussed improvements in the company’s capacity management in previous statements to investors. He noted that the excess capacity observed during the summer months began to improve by August, helping to boost revenue trends as the airline entered the fall season, typically a quieter period for travel.

While we acknowledge the potential of Delta Air Lines, Inc. (NYSE:DAL) as an investment, our conviction lies in the belief that 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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