3 Airline Stocks to Bet on Post IATA's Bullish 2025 Forecast

Zacks12-11

The stronger-than-expected recovery of air travel demand following the end of the pandemic is supporting growth of the Zacks Transportation - Airline industry. While air travel demand is particularly ...

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While air travel demand is particularly ...</p>\n\n<a href=\"https://finance.yahoo.com/news/3-airline-stocks-bet-post-155000143.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Airline Stocks to Bet on Post IATA's Bullish 2025 Forecast</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Airline Stocks to Bet on Post IATA's Bullish 2025 Forecast\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-11 23:50 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/3-airline-stocks-bet-post-155000143.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The stronger-than-expected recovery of air travel demand following the end of the pandemic is supporting growth of the Zacks Transportation - Airline industry. While air travel demand is particularly ...</p>\n\n<a href=\"https://finance.yahoo.com/news/3-airline-stocks-bet-post-155000143.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"POST","symbol_name":"Post Holdings","start_time":0,"source_url":"https://finance.yahoo.com/news/3-airline-stocks-bet-post-155000143.html","article_id":"2490898700","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/SHR9EvEHTMGcWnYQO7LuRw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/fe3d5cf0585af2a348afd880076d36f4"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2490898700","pubTimestamp":1733932200,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Passenger volumes moved northward during the summer season and during the Thanksgiving holiday period this year. The latest positive update on airlines is the bullish projection for 2025 by the International Air Transport Association or IATA, despite the existing economic uncertainties and supply-chain issues. The uptick in passenger volumes contributed to IATA forecasting passenger count to exceed 5 billion across the globe in 2025 for the first time. Given the positivity surrounding the industry, we believe betting on airline stocks likeUnited Airlines UAL,SkyWestSKYW andRyanair Holdings RYAAY is a prudent move.On a region-wise basis, North American carriers are expected to be the major contributors to the next-year net profit projection. They are expected to reap net profits of $13.8 billion or $11.8 per passenger next year. Reflecting the improved air travel demand scenario, passenger demand this year is likely to grow 3% year over year. European carriers are expected to reap net p","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"POST":"Post Holdings","LU1201861165.SGD":"Natixis Harris Associates Global Equity PA SGD","SKYW":"西空航空","BK4588":"碎股","BK4500":"航空公司","BK4585":"ETF&股票定投概念","RYAAY":"Ryanair Holdings plc","BK4008":"航空公司","BK4212":"包装食品与肉类","BK4566":"资本集团","BK4532":"文艺复兴科技持仓","UAL":"联合大陆航空","BK4548":"巴美列捷福持仓","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","LU0648000940.SGD":"Natixis Harris Associates Global Equity RA SGD"},"translate_title":"IATA 2025年看涨预测值得押注的3只航空股","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"POST":1,"RYAAY":1,"UAL":1,"SKYW":0.9},"content_text":"The stronger-than-expected recovery of air travel demand following the end of the pandemic is supporting growth of the Zacks Transportation - Airline industry. While air travel demand is particularly strong on the leisure front, it is heartening to note that business demand has made an impressive comeback. \nPassenger volumes moved northward during the summer season and during the Thanksgiving holiday period this year. The latest positive update on airlines is the bullish projection for 2025 by the International Air Transport Association or IATA, despite the existing economic uncertainties and supply-chain issues. The uptick in passenger volumes contributed to IATA forecasting passenger count to exceed 5 billion across the globe in 2025 for the first time. Given the positivity surrounding the industry, we believe betting on airline stocks like United Airlines UAL, SkyWest SKYW and Ryanair Holdings RYAAY is a prudent move.\nIATA’s FY25 Projection in Detail\nOwing to the buoyant air travel demand scenario, IATA expects the industry to generate a net profit of $36.6 billion (net profit margin of 3.6%) in 2025 compared with $31.5 billion estimated for 2024. Operating profit in 2025 is expected to be $67.5 billion for a net operating margin of 6.7% ( 6.4% is expected in 2024). The top line in 2025 is now anticipated to be $1.007 trillion (crossing the $1 trillion mark for the first time). The revenue projection reflects a 4.4% increase from the 2024 expectation.\nPassenger revenues are the biggest driver of the rosy projection for 2025. Per IATA, passenger revenues in 2025 are anticipated to be $705 billion, which is 70% of total revenues. Ancillary revenues are expected to be $145 billion. Per IATA, a record 5.2 billion people are likely to take to the skies in 2025.\nCargo revenues in 2025 are expected to be $157 billion, which, though lower than the 2023 actuals of $138 billion, are still higher than the pre-pandemic levels. Cargo volumes in 2025 are expected to reach 72.5 million tons, a 5.8% increase from the 2024 expectation.\nTotal costs in the next year are projected to be $940 billion, 4% higher than the 2024 estimate, primarily due to high labor costs,  which are expected to increase 7.6% from 2024 estimates. Per IATA, the average jet fuel cost is expected to be $87 per barrel in 2025, down from $99 per barrel estimated in 2024. The total fuel bill in 2025 is expected to be $248 billion, down 4.8% from the 2024 estimate. The projection for the 2025 fuel bill implies that fuel expenses account for 26.4% of total operating costs.\nOn a region-wise basis, North American carriers are expected to be the major contributors to the next-year net profit projection. They are expected to reap net profits of $13.8 billion or $11.8 per passenger next year. Reflecting the improved air travel demand scenario, passenger demand this year is likely to grow 3% year over year. European carriers are expected to reap net profits of $11.9 billion. The performance of carriers in regions like Latin America, the Middle East and Asia Pacific is also likely to improve, mainly owing to higher passenger volumes.\n3 Airline Stocks to Buy Now\nGiven this encouraging backdrop, we believe airline stocks should be in one’s portfolio so that they can reap healthy returns. Below, we present three airline stocks having a Zacks Rank #1 (Strong Buy) or #2 (Buy). Moreover, the following companies have witnessed favorable earnings estimate revisions for the next year.\nSkyWest currently sports a Zacks Rank #1. SKYW is benefiting from high revenues from flying agreements and fleet modernization efforts. You can see the complete list of today’s Zacks #1 Rank stocks here.\nSkyWest has an impressive earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 79.12%. The Zacks Consensus Estimate for current and next-year earnings have been revised 4.1% and 7.1% upward, respectively, over the past 60 days.\nImage Source: Zacks Investment Research\nUnited Airlines, based in Chicago, currently carries a Zacks Rank #2. The Zacks Consensus Estimate for current and next-year earnings have been revised 3.5% and 3.6% upward, respectively, over the past 60 days.\nStrong air travel demand, supported by new routes, represents a major tailwind for UAL. The environment-friendly approach also bodes well for the company.\nImage Source: Zacks Investment Research\nRyanair, based in Ireland, currently carries a Zacks Rank #2. Upbeat air travel demand is aiding the company. The carrier has reported impressive traffic numbers for the past few months, driven by upbeat passenger volumes.\nThe company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The Zacks Consensus Estimate for next-year earnings has been revised 1.04% upward over the past 60 days.\nImage Source: Zacks Investment Research\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nRyanair Holdings PLC (RYAAY) : Free Stock Analysis Report\nUnited Airlines Holdings Inc (UAL) : Free Stock Analysis Report\nSkyWest, Inc. (SKYW) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"economic","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2490898700"}