Shares of leading US airlines and Delta are poised to soar in 2025 – Magic Post

As we approach the final few weeks of the year, it’s time to think about industries and stocks that are likely to do well in 2025. One such industry that is starting to gain momentum is the aviation industry.

After a somewhat volatile first half of the year, airline stocks are generally higher, as seen in… US Global Jets ETF NYSEARCA: Aircrafton their way to finishing the year on top. The ETF is up more than 50% since August, and while it hasn’t reached its 2021 level yet, it’s nearly at its post-pandemic high.

The good news for investors is that the global aviation industry is expected to see a record high in 2025, with profits and passenger numbers expected to soar to new heights. According to the International Air Transport Association (IATA), revenues are expected to exceed $1 trillion for the first time, supported by strong demand in passenger and cargo markets. Analysts expect airline profits to jump across the board despite ongoing challenges such as supply chain disruptions and rising costs.

Passenger growth is the main driver of this momentum, with forecasts showing an increase of approximately 7% year-on-year, while air cargo revenue is also expected to perform well. Margins have improved thanks to cost control, lower oil prices, and strong demand for premium and corporate travel, and these trends are expected to continue through 2025. Let’s turn to two airlines in particular that are worth looking at.

American Airlines shares are targeting a 30% upside from current levels

Since approaching an all-time low at the beginning of August, shares have soared american Airlines Group, a company. NASDAQ:AL They effectively only went in one direction: upward. The stock is up almost 100% in just four months, a stunning reversal for a company that many investors had written off before the summer.

Much of the recovery has centered around a return to year-over-year revenue growth, as this year saw American Airlines post its highest quarterly revenue ever. Understandably, the stock has performed well, and there are plenty of reasons to believe this will continue.

Having already gained the affection of many analysts with bullish ratings in recent weeks, Tuesday saw the team at Bernstein upgrade its rating on American Airlines from market perform to outperform while giving the stock a new price target of $24. Morgan Stanley echoed this on Wednesday morning, reiterating its overweight rating and also boosting its price target.

From US Airways’ stock trading price of $17 on the morning of December 11, this suggests a target upside of more than 30%.

Delta Air Lines looks to close its book after a year of volatility

American proverb, Delta Airlines New York Stock Exchange: D Stocks have also been on a roller coaster this year. However, they appear to be on the verge of finishing at a high, as this month has already seen them reach a record high. As part of a broad, optimistic stance on the airline industry overall, the UBS Group team recently initiated coverage of Delta Air Lines with a Buy rating. This was in line with similar bullish updates from Citigroup, Goldman Sachs and Barclays last month.

UBS is particularly bullish on the company’s revenue streams, strong balance sheet and track record of profitability. With 2025 expected to be a record year for passenger numbers, Delta is starting from a particularly strong position.

The team’s price target is $88 It says it all, because it indicates a targeted uptrend 40% from current levels It’s worth noting that while US Airways shares are up after rising in recent weeks, Delta shares certainly look a bit deflated, having spent the past month consolidating and trading sideways.

However, the fact that they managed a record close last week speaks to the underlying demand for their shares, and it’s understandable that they might just want to take a break. Investors should look for the stock to close above $67, as this will confirm that the rally is back and that the uptrend is intact.

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