Top 10 Airline Stocks Benefiting From The Air Travel Boom

1. Delta Airlines (NYSE:DAL)

Delta Airlines opened up 6% from the previous day’s close on the back of its impressive earnings report. The company reported an EPS of $1.85 vs analyst estimates of $1.74. The EPS also showed significant growth in the prior year’s $1.28.

Air travel demand was healthy during the holiday season as depicted by Delta’s result. The demand was so strong that 4 of Delta’s top 10 days in terms of revenue generated came during the months of November and December.

CEO Ed Bastian expects the strong travel demand to continue heading into 2025. He believes Delta’s premium products and experiences attract customers. These customers could help the company deliver the best financial performance of the last 100 years in 2025. Considering the optimism, it is not surprising that the stock is attracting more and more investors today.

Delta Airlines is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 57 hedge fund portfolios held DAL at the end of the third quarter which was 51 in the previous quarter. While we acknowledge the potential of DAL as a leading investment, 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 as promising as DAL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.