Sheryar Siddiq
In this article, we discuss the 9 best airline stocks to buy according to hedge funds. If you want to skip our detailed analysis of these stocks, go directly to the 4 Best Airline Stocks to Buy According to Hedge Funds.
Hit faster and relatively harder than most other sectors, the aviation industry, and consequently, airline companies themselves, took massive blows last year, with shares plummeting due to the Covid-19 pandemic. According to a report by McKinsey, the airline industry’s revenue totaled $328 billion in 2020, an estimated revenue loss of over $370 billion versus the year 2019. While the industry is expected to make gradual recovery and growth, air traffic likely wont return to pre-pandemic levels until 2024.
Due to the introduction of vaccines and an ease in lockdowns, however, the economy is set to go again, with an increase in both domestic and international travel. The International Air Transport Association (IATA) expects losses amounting to $47.7 billion for the airline industry in 2021, an improvement over the estimated industry loss of approximately $126.4 billion in the year 2020. Additionally, cargo has remained a strong branch of business for the sector, outperforming the passenger business, with revenues expected to rise $152 billion, representing one-third of the airline industry's revenue.
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