Airlines are essential to the industry, but their stock has historically been a poor investment. Airlines stocks prices fluctuate with market cycles, and previous downturns have resulted in airline failures and bankruptcies.
In this guide, we’ll look at the best airline stocks to buy right now and show you how to do so in less than five minutes with a zero-commission broker.
Airlines industry in a post-pandemic world
The epidemic of COVID-19 resulted in a brief reduction in airline earnings and stock prices. People were able to travel again thanks to vaccines, but the recovery was rocky as novel variations disturbed usual travel patterns.
The situation in Ukraine, as well as the subsequent rise in oil prices, added to the uncertainty, as fuel accounts for up to 30% of an airline’s total costs.
The domestic industry in the United States avoided severe bankruptcy as a result of the epidemic, and the airlines appear to be in good enough shape to weather the storm. However, it could take years for things to return to normal. The International Air Transport Association, which represents the airline sector, forecasted that a full recovery would take until 2024 – a prediction made before the invasion of Ukraine.
Top Airline Stocks to invest in 2022
Here’s a quick rundown of the best airline stocks to purchase in 2022. By scrolling down, you can read an in-depth analysis of each stock!
- Easyjet (LON: EZJ)
- Southwest Airlines (NYSE: LUV)
- Delta (NYSE: DAL)
- American Airlines (NASDAQ: AAL)
- United Airlines (NASDAQ: UAL)
- Spirit Airlines Incorporated (NYSE: SAVE)
- Alaska Air Group, Inc. (NYSE: ALK)
- International Airlines Group (LON: IAG)
Top Airline Stocks UK Reviewed.
1. EasyJet (LON: EZJ)
Easyjet is a low-cost airline established in the United Kingdom that serves over 1,000 locations in over 30 European countries. This airline stock isn’t for the faint of heart, not least since it has a high amount of volatility. Not only is this COVID-related, but investors are also concerned about rising debt levels and declining profitability.
With that stated, we like the look of Easyjet at current pricing if you’re searching for the top airline stocks in terms of value. Its stocks, for example, were traded at 935 GBX in August of this year. Easyjet shares were worth 1,500 GBX each just seven months later.
That’s a 60 percent increase in a relatively short amount of time. Easyjet’s shares, like the rest of the industry, suddenly plummeted. In reality, in March 2020, the shares touched a low of 410 GBX. The good news for investors is that Easyjet stocks are currently trading at 545.11 GBX as of April 2022. Since the aforementioned 52-week lows, the stock has recovered more than 51%.
The most crucial thing to remember about Easyjet is that company is now experiencing financial difficulties. Not only does management expect losses of more than £1 billion in 2022, but debt levels continue to increase above unsustainable levels. Easyjet, on the other hand, has access to advantageous financing options, which many market analysts believe will help the airline company weather the current economic storm.
Easyjet stocks had a trading volume of £8.15 million at the time of composing this article. Its 52-week stock price high is 921.89 GBX, implying a 69 percent upside objective at the current price of 545.11 GBX.
2. Southwest Airlines (NYSE: LUV)
Southwest Airlines is not just a low-cost airline with flights to over 120 destinations, but it is also the world’s largest budget-friendly airline. The airline stock has a market capitalization of nearly £24 billion at the time of writing, thanks to its NYSE listing. Southwest equities, like the rest of the airline business, were heavily damaged by the epidemic.
In fact, in the last five months of 2021, the stock dropped from £63 to £39 per share. This indicates a massive 59 percent drop. The stocks, on the other hand, have nearly returned to pre-COVID levels, with Southwest Airlines trading at over $45.91 (£41.73) in April 2022, which is excellent news for the airline’s recovery.
Southwest Airlines stocks had a trading volume of £7.52 million at the time of composing this article. At the present price of $45.91 (£41.73), its 52-week stock price high is $64.75 (£58.84), indicating a 41 percent upside target.
3. Delta Airlines (NYSE: DAL)
Even with worldwide regulations firmly in place, Delta is another airline stock that is slowly but steadily recovering. However, because so much of Delta’s fleet is based in the United States, many flights continue to operate. Even yet, the number of passengers is still insignificant compared to usual.
This is still a significant amount to burn through, but it’s a significant improvement. Delta’s stock was trading at $62 per share prior to the epidemic. The stocks then plummeted to a low of $19 in March 2020, marking an almost 70% drop.
Delta costs just over $39.31(£35.74) at the time of publishing, so those who bought it are presently in good shape. That’s a fantastic return of more than 120 percent. Delta stocks, on the other hand, still require a 47 percent gain to return to pre-pandemic levels, implying that the company is undervalued.
Delta’s post-pandemic balance sheet is steady, and labor relations are generally healthy, making it a reasonable bet to be among the first international carriers to fully recover.
Delta Airlines stocks had a trading volume of £15.93 million at the time of composing this article. Its 52-week stock price high is $ 51.82 (£47.11), implying a 31 percent upside objective at the current price of $39.31 (£35.74).
4. American Airlines (NASDAQ: AAL)
By scheduled revenue passenger miles, American Airlines is the world’s largest airline. On December 23, the airline said that it is pushing through with measures to recall its furloughed employees. It was also revealed that around 8,000 American Airlines flight attendants have already received recall letters. American Airlines’ revenue plunged 73 percent in the third quarter, resulting in a $2.4 billion net loss, compared to a $425 million profit a year earlier.
If you want to continue with companies that are presently enjoying tremendous rising trend, American Airlines is among the top airline stocks to invest in. These shares were trading for under $12 apiece at the start of 2021. In April 2022, the same shares are offered for no less than $18.24 (£16.58) per share.
This signifies that the stock has gained more than 50% in less than a year of trade. American Airlines stocks were trading at 52-week highs of $28 before the epidemic was discovered. This means the company has almost fully recovered its COVID losses, which is good news for long-term investors.
It remains to be seen whether American Airlines shares have the balance sheet to weather the COVID-19 storm. However, if it does, the upside potential is appealing — especially for those of you searching for a larger risk/reward ratio. Importantly, if you do decide to invest in American Airlines stocks, you should keep your stakes moderate.
American Airlines stocks had a trading volume of £44.96 million at the time of composing this article. Its 52-week stock price high is $ 26.04 (£23.67), implying a 42 percent upside objective at the current price of $18.24 (£16.58).
5. United Airlines (NASDAQ: UAL)
There are both positives and cons to analyze when examining United Airlines Holdings’ stock price action. First and foremost, it’s worth noting that the stocks were performing well before the outbreak. In mid-2016, United Airlines, for example, was trading at just over $40 a share. Back before the outbreak, the stocks were worth moreover $80 each.
That’s a significant increase of more than 100% in less than 5 years of trading. Before global travel restrictions put a halt to things, it’s reasonable to suppose that this growing trend would restart. Having said that, the rapidity with which United Airlines stock plummeted in March 2020 was uncanny.
In just a few weeks, the stock market has dropped from $81 to $17, representing an almost 80% drop. Those that bought shares at the lows, when the stock was at $17, have reaped the benefits of its rebound. United Airlines shares are worth $45.78 (£41.63) at the time of writing in April 2022.
That’s a 164 percent increase in just one year. However, simply to get back to pre-March 2020 levels, this airline stock needs to gain another 80% in price.
6. Spirit Airlines Incorporated (NYSE: SAVE)
Spirit Airlines specializes in low-cost domestic and international flights. The airline operates more than 400 daily flights to more than 60 locations. Spirit Airlines distinguishes out due to its strong financial position and consistent cash flow.
After the firm’s fourth-quarter performance and good statistics, JPMorgan raised Spirit stock to Overweight in October. However, on December 16, the brokerage downgraded the stock, citing new recovery worries.
Spirit stock has lost nearly 40% of its value this year. Owing to the ongoing drop in traffic due to the coronavirus pandemic, the airline announced on December 3 that it expects considerable pressure on ticket revenue per person flight segment in the fourth quarter. Non-ticket revenue per person flight segment is also expected to be down somewhat in the fourth quarter, according to the firm.
Spirit stocks had a trading volume of £4.29 million at the time of composing this article. Its 52-week stock price high is $39.19 (£35.63), implying a 77 percent upside objective at the current price of $22.02 (£20.02). Spirit’s fundamentals suggest it’s on the downturn, making it one of the best Airlines stocks to buy for long-term gains.
7. Alaska Air Group, Inc. (NYSE: ALK)
Alaska is in a far better position to weather the coronavirus storm, thanks to its limited exposure to business travel and strong financial situation. The cash burn rate of the corporation is far lower than that of its competitors. For example, it burned $117 million in September, far exceeding its own forecasts of $150 million.
The airline has recently made headlines after agreeing to purchase a number of Boeing 737 Max jets. This is the first order of a career in the United States since the Federal Aviation Administration removed its banning order following two fatal Max airliner crashes.
Alaska stock is in the fall, providing now an excellent time to buy. Alaska stocks had a trading volume of £2.16 million at the time of composing this article. Its 52-week stock price high is $ 74.25 (£67.51), implying a 28 percent upside objective at the current price of $57.95 (£52.69).
8. International Airlines Group (LON: IAG)
The International Airlines Group (IAG) is the parent company of a number of airlines. Iberia, British Airways, LEVEL, Aer Lingus, and Vueling are among the airlines involved. This means that by purchasing IAG stock, you are indirectly investing in a number of airline companies.
The stock has risen from 137 GBX in January 2021 to over 215 GBX at 52-week highs. This equates to gains of more than 56 percent. IAG stocks, on the other hand, have since cooled off, with an average price of 140.12 GBX in April 2022. This, of course, allows you to get a better deal on this top-rated airline stock.
Where to buy the Best Airline Stocks in the UK?
Once you’ve decided which airline stocks to buy, the next step is to identify a broker that can help you complete your transaction. You’ll discover a limited list of regulated brokers in the sections below that allow you to buy airline stocks with no commission.
eToro is a regulated internet broker with more than 20 million customers. The SEC, FCA, ASIC, and other recognized authorities govern the platform, so you can buy airline stocks with confidence. You’ll get access to over 2,500 equities from 17 different international markets at eToro. This means you may buy and sell a wide variety of airline stocks, including all of the recommendations on this page. You simply need to spend $50, regardless of how much your chosen airline stock is currently selling for.
At eToro, all stocks are available for purchase with no commission. In addition to individual companies, eToro features airline stock ETFs. ETFs at eToro is similarly commission-free, with a $50 minimum investment. eToro accepts debit and credit cards, as well as e-wallets like Paypal and Skrill and bank wire transfers.
- Invest in stocks with ZERO commissions and stamp duty
- Each stock requires a minimum investment of $50
- Debit/credit cards, e-wallets, and UK bank transfers are all supported
- The FCA regulates it, and the FSCS insures it
- Over 20 million individuals use it
- It’s ideal for novices
- Tools for social and copy trading
- It can be a bit too basic for professional traders
- MT4 & MT5 are not supported
You may purchase airline stocks as a CFD instrument on Capital.com. This implies that you will not be the actual owner of the stocks. Instead, you’ll be trading them by predicting whether the airline stocks’ value will rise or decline. It’s only a matter of putting a buy or sells order to do this. When trading airline stocks, having access to short-selling instruments is critical, as this sector of the financial markets is now quite volatile.
In other words, if you believe an airline stock is doomed in terms of its financial health and viability as a going concern, you can use the Capital.com platform to short-sell it. This CFD trading site is extremely appealing because it allows you to leverage your airline stock investments. Limits will apply, and they will vary depending on where you live. Nonetheless, you may trade airline stocks with or without leverage at Capital.com for a 0% commission.
In most circumstances, the spreads at Capital.com are low, and there are no deposit or withdrawal fees. The minimum deposit amount at Capital.com is determined by the payment method you select. Bank wires demand a minimum of $250, while debit/credit cards and e-wallets only require $20. Capital.com is licensed by the FCA, CySEC, ASIC, and the NBRB, so you can be confident in its security. Capital.com allows you to open an account in minutes, either online or through the platform’s investment app.
- Spread betting and CFD broker with a high rating
- The FCA, ASIC, CySEC, and the NBRB all have licenses
- Deposits must be at least $20 (debit/credit cards and e-wallets)
- On all marketplaces, there is no commission
- Spreads are tight, and there are no fees for deposits or withdrawals
- Thousands of financial markets are supported
- For newcomers, this is a good option
- Traders with more experience may find the broker to be too simple
- On bank transfers, a minimum deposit of $250 is required
How to Buy Airline Stocks UK?
So, now that we’ve covered the best brokers for buying airline stocks, we’ll show you how to invest in your preferred firm from the comfort of your own home.
This guide walks you through the procedures with FCA broker eToro, which has all of the finest airline stocks to buy that we’ve highlighted in this guide.
Step 1: Create an account
The initial step is to set up an account with eToro, as it is with all FCA-regulated brokers in the UK. Click the ‘Join Now’ icon on the eToro website online or on your mobile browser. You can trade stocks on your phone by downloading the eToro stock trading app.
eToro will then need to obtain some personal information from you including:
- First and Last Name
- Home Address
- Date of Birth
- Mobile Number
- Email Address
- National Insurance Number
- Username and Password
Your UK cellphone number will also be required by eToro. This will be accomplished by sending you a unique code through text message, which you must enter to complete the registration process.
Step 2: Confirm Identity
You’ll have to upload some verification documents at some time. This must be completed before you can make a withdrawal, so do it as soon as possible.
All you have to do now is upload the two documents below:
- Valid passport or driver’s license
- Utility bill or bank account statement
Step 3: Make a Deposit
You’ll need to fund your newly made eToro account now. A minimum deposit of $50 (about £145) is required by the broker. By fulfilling the minimum, you’ll be able to purchase four $50 airline stocks of your choice.
You have a number of options for making a payment in the United Kingdom:
- Debit/Credit Card (Visa, MasterCard, Maestro)
- UK Bank Transfer
Step 4: Search for an Airline Stock
If you already know the airline stock you want to buy, searching for it is the simplest way to do so. We’re looking to purchase Easyjet stocks, as you can see in the example below.
If you’re not sure which airline stock to buy, select the ‘Trade Markets’ tab, then ‘Stocks.’ By clicking on the corresponding exchange, you can browse the different airline stocks that eToro supports.
Step 5: Place an Order
An order form will display after you click the ‘Trade’ button next to the airline shares you want to buy.
Even if the stocks are listed on the London Stock Exchange, you must indicate your stake here, which must be in US dollars. The minimum stock trade on eToro is $50 once again.
Click the ‘Open Trade’ button to finalize the transaction.
Identifying the best airline stocks to invest in right now can be difficult. After all, the impact of COVID-19 and its impact on worldwide lockdowns and travel restrictions are still being felt by a large portion of the sector. However, there are still a lot of bargains to be grabbed, with numerous airline stocks trading at attractive entry levels.
Consider finishing the process at regulated broker eToro if you want to acquire airline stocks right now and know which firms best meet your investment goals. There is a $50 minimum investment requirement, and all stock investments are commission-free. Furthermore, eToro offers airline stock ETFs, which are ideal for diversification.
Frequently Asked Questions
What is the best airline stock to buy in the United Kingdom?
At the moment, all airline equities are subject to increased risk, not least since global travel restrictions remain in place in most parts of the world. Having said that, many would argue that Easyjet shares are still a decent buy at current prices. Importantly, Easyjet has made a good recovery since the stock market crash in March 2020, and the company has access to a big credit facility. Plus, Easyjet was doing exceptionally well before the outbreak, so the upside potential is appealing.
Is there an exchange-traded fund for airline stocks?
Yes, the United States Global JETS ETF invests solely in airline stocks. The ETF in question owns a little more than 40 airline companies based all over the world.
Is it possible to short-sell airline stocks?
Yes, if you want to short-sell an airline stock because you believe it will fail, you can do it using a CFD instrument. You can use a sell order to short airline stock CFDs on both eToro and Libertex. Always keep in mind that CFD products include overnight financing fees, which you should factor into your target price.
Which airline stock has the most solid balance sheet?
The balance sheet is the most critical factor to examine while looking for the finest airline stocks. After all, a healthy balance sheet will give the corporation the best chance of surviving the coronavirus outbreak. Southwest Airlines, which had the industry’s best financial sheet at the time of writing, should be able to handle the epidemic.
What other airline stocks are there?
Boeing, Allegiant, Ryanair, Alaska Air, and Skywest are among the other airline stocks available.