Top 10 Airline Stocks Benefiting From The Air Travel Boom

2. United Airlines (NASDAQ:UAL)

United Airlines stock also surged after the earnings report of Delta Airlines. The company’s stock produced impressive returns of 138% last year, making it the 5th best-performing stock in the S&P 500. That trend is poised to continue in 2025.

Its 2025 EPS estimates stand at around $12, which means on a forward PE basis, the stock is trading at a multiple below 9. Moreover, the company has announced a new $1.5 billion share buyback program recently, which should help the company buy back about 5% of its total shares outstanding.

The company has a debt of over $25 billion against a cash balance of $14.4 billion. This may look worrisome, but the $10 billion in operating cash flow on an annual basis makes up for the extra debt on the books. UAL continues to be undervalued, though one could argue that airline stocks tend to remain undervalued for longer. The optimism caused by Delta’s earnings call should continue to drive the stock up till the company’s quarterly report comes out.