6 Reasons To Invest In Airlines
(Video length 00:02:00)
There’s no doubt 2020 was a rough 12 months for airline stocks, but we believe the investment case remains strong. Here are Frank Holmes’ 6 reasons to invest in airlines before they make a full recovery from pandemic lows.
- Worldwide, the pandemic is easing.
- Vaccine distribution is ramping up.
- Airlines are adding new routes.
- Boeing is on the rebound and seeing new orders for aircraft.
- Two airlines have gone public so far in 2021 – Sun Country and Frontier.
- A fresh round of stimulus –$1,400 checks for most Americans and $15 billion in aid for carriers
As the world re-opens its borders, now is the time to jump into airline stocks before they make a full recovery on rebounding travel. Keep in mind that airline stocks, particularly now, can be highly volatile compared to the broader market. The daily volatility, or standard deviation, of airline stocks, is ±4%, versus ±1% for the S&P 500 Index.