Top 10 Airline Stocks Benefiting From The Air Travel Boom

8. Alaska Air Group (NYSE:ALK)

2025 will be the first full year of operations for Alaska Air Group since acquiring Hawaiian Airlines. The next 3 years look promising for the airliner after it revised its earnings guidance upward on its Investor Day last month. By 2027, the company expects to grow its margins to 11%-13% on the back of synergies from the Hawaiian Airlines acquisition. It expects about $300 million in revenues from the synergies in addition to $200 million saved via reduced interest costs and efficiencies from scaling operations.

The company’s current margins stand at 3%-4%, giving investors a good chance of a potential re-rating going forward if it can achieve its targets. However, investors must note that the recovery to 11%-13% levels will bring the company to the same level it was at pre-pandemic. This would be a tough task considering how far the costs have gone up.

The plan to increase the premium seating mix to 29% to generate additional revenue will be one way to achieve its 2027 objectives. If the company is able to pull off this plan, the upside is huge.