Why Delta Might Be the Best Airline Stock to Buy Right Now
Apr 20, 2022The last time we discussed airline stocks, it was late last year and we thought a bottom was coming soon.
And as we mentioned during our outlook for 2022, we believed that retail spending would decrease at some point this year.
Fast forward to today and it looks like this change just happened. With this change, we can start to see the shift into services based-spending (like airline travel) rather than spending on physical goods (e.g. clothing, sneakers, etc.).
And like we told you back in December we thought airlines would start to see some huge tailwinds in Q2, in addition to the shift mentioned above, once US-based travel & corporate travel picked back up.
And based on the trends then and now it looks like this finally is happening. This is because when we look at the chart below we see that traveler volume starting off this year is already on par with traveler volume from 2019 (pre-pandemic).
Based on where the trends are going, we believe travel in the second half of 2022 could see demand spike above pre-pandemic levels!
But while that bodes well for airlines as a whole, Delta ($DAL) could have more upside than any other airline.