3 Airline Stocks With Long-Term Potential; Morgan Stanley Says ‘Buy’
By Editor - Tue Sep 15, 6:45 pm
The coronavirus pandemic crisis dealt a hard blow to the airline industry. Disruptions to trade and travel, social lockdown policies, and increased border restrictions were only the beginning of the troubles. Even though income collapsed, the airlines still had to maintain aircraft and hangars, pay leases on equipment and airport space, and meet their debts.But the virus is starting to wane, and economies are coming back – and travel is starting to resume. The big question for the airlines is how many people are willing to book flights? There is no doubt that the pandemic will have cost the industry some potential passengers, people simply no longer willing to fly, but for many others, travel will remain essential. How the industry will look in 2021 is still not clear, as Morgan Stanley transportation expert Ravi Shanker notes: “While the rising industry tide will lift all boats, we recognize that we are not out of the woods yet and that there is likely to be significant volatility in the next six months as the recovery takes shape.”This does not stop Shanker from rating the airline stocks, nor does it stop him from choosing three tickers that are primed for strong gains as the industry comes back to life. Using TipRanks’ Stock Comparison tool, we were able to evaluate these 3 airline players alongside each other to get a sense of what the analyst community has to say.Southwest Airlines (LUV)First on the list is Southwest Airlines, arguably the best airline operating in the US. Southwest has built its reputation on good customer service, and leveraged that to become the world’s largest budget airline.
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