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Market Update

Is There Opportunity in Airlines Stocks?

U.S. airlines turn a corner as travel demand picks up.

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As more people in the United States receive COVID-19 vaccines, domestic air travel has started to pick up. In fact, TSA data show that airports are busier now than at any point during the pandemic. U.S. airlines are expanding their flight offerings to accommodate rising demand for leisure travel heading into the summer. Overall, things are looking up for airlines, which have been severely battered during the pandemic.

Challenges remain despite a more positive near-term outlook. Our analysts anticipate that vaccinations and an easing of travel restrictions will allow substantially more domestic leisure travel over the summer, but that airlines will likely face a second year of operating losses in 2021 even with government support. 

Margaret Giles does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.