The Airline industry is rebounding rapidly on a solid vaccination drive and pent-up demand for travel. These factors, coupled with substantial federal aid, should allow the industry to make a stellar comeback. Given this backdrop, Wall Street analysts expect the shares of Delta Air Lines (NYSE:DAL), United Airlines (UAL), Alaska Air Group (NYSE:ALK), and SkyWest (NASDAQ:SKYW) to rally more than 25%. So, let’s take a closer look at these names. The airlines' industry was one of the hardest-hit industries last year, as lockdowns and travel bans halted airline operations worldwide entirely for several months. However, with 69% of the adult population vaccinated with at least one dose, travel restrictions are being eased, and the demand for airline services is rebounding.
The global airlines market is projected to grow at a 12.7% CAGR over the next five years to reach $744 billion by 2026. According to the International Air Transport Association (IATA), air traffic in the Americas region is expected to witness solid growth over the next 20 years. Pent-up demand and increasing consumer spending are driving a gradual return in leisure and commercial travel.
Given this backdrop, Wall Street analysts expect airline stocks Delta Air Lines, Inc. (DAL), United Airlines Holdings, Inc. (NASDAQ:UAL), Alaska Air Group, Inc. (ALK), and SkyWest, Inc. (SKYW) to gain altitude with a 25%-plus rally in the coming months.