More than 42 million Americans are expected to travel this Memorial Day weekend according to AAA, which would be 7% more than 2022 and the third-highest ever.
Amid all the flying, there are investment opportunities to be spotted from 30,000 feet.
Global airline traffic increased more than 50% year-over-year in March, according to the International Air Transport Association, and a recent IATA survey found that 79% of travelers are planning a trip between June and August.
In fact, forward bookings released earlier this month show 135% travel growth ahead in the Asia-Pacific region, 40% growth in Europe and 14% growth in North America.
That means airline revenue is only going to increase, but markets haven’t seemed to price that in. The S&P 500 Airlines industry index is down more than 11% since March 8 and 35% compared to May 1, 2019.
Another tack is to look at where insiders at companies are buying up more stock in anticipation of future gains.
Of the four major airlines (American, United, Delta and Southwest), American Airlines has seen by far the most insider purchases — some 948,899 shares over the previous three months.
Shares of American Airlines traded 0.6% lower Friday at $14.29.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel