The Zacks Analyst Blog Highlights United Airlines, American Airlines and Delta Air Lines

For Immediate Release

Chicago, IL – November 15, 2023 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: United Airlines UAL, American Airlines AAL and Delta Air Lines DAL.

Here are highlights from Tuesday’s Analyst Blog:

U.S. Airlines Set to Soar This Thanksgiving

It is a well-documented fact that air travel demand has bounced back strongly from the pandemic lows. Driven by buoyant passenger volumes, the upcoming Thanksgiving travel period (Nov 17-27) is expected to be a very busy one for U.S. airlines.

Upbeat traffic volumes during the Labor Day holiday weekend earlier this year further highlight the encouraging scenario. Therefore, we believe that investors interested in the industry would do well to keep U.S. airline stocks like United Airlines, American Airlines and Delta Air Lines on their radar.

The abovementioned stocks currently carry a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here

Following the removal of coronavirus-induced restrictions, pent-up demand has been driving traffic for the airlines. Despite inflationary pressures and the resultant high interest rates, there is a wave of optimism in the United States surrounding air travel demand.

To meet the anticipated demand swell, U.S. airlines are boosting capacity (airlines are offering 253,000 more seats per day during the period) despite challenges like high labor and fuel costs. These headwinds are unlikely to have a significant adverse impact on passenger volumes in the Thanksgiving period, as people are eager to travel after being confined to their homes during the pandemic.

Per A4A, air travel during the Thanksgiving holiday period this year is likely to touch an all-time high. Passenger volume is expected to be nearly 30 million over the 11-day period. The forecast implies that 2.7 million passengers are likely to fly per day, a 9% increase from 2022 actuals. Per the projection, the Sunday after Thanksgiving, Nov 26, is likely to be the busiest day of the 11-day holiday period. A record 3.2 million passengers are expected to take to the skies on that day.

Moreover, the prevalence of remote working is expected to ease the congestion with respect to air travel this year as it helps many people travel on days when the rush is likely to be relatively less, and air tickets are comparatively cheaper.

Delta expects approximately 6 million passengers to avail its flights in the Nov 18-29 timeframe. The forecast implies that nearly 50,000 passengers are likely to fly per day. Management believes that Delta's peak travel days are expected to be the Friday before Thanksgiving (and the Sunday following the holiday). American Airlines expects the busiest-ever Thanksgiving travel period. Management expects that more than 7.8 million passengers will avail of its flights in the Nov 16-Nov 28 timeframe.

Like AAL, United Airlines expects the busiest-ever Thanksgiving travel period. The Sunday after Thanksgiving is expected to be the busiest in terms of air traffic. Management expects 5.9 million passengers to board its flights over the 11-day Thanksgiving travel period.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report

United Airlines Holdings Inc (UAL) : Free Stock Analysis Report

American Airlines Group Inc. (AAL) : Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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