Vaccine Rollout Could Lift These Airline Stocks

Four air transport leaders look to make the most of border reopenings

Vikram Barhat 7 April, 2021 | 4:28AM
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Air Canada jet

The steadily accelerating vaccine rollout has fuelled hopes for a global economic rebound. In North America, a faint glimmer of normalcy is emerging on the horizon as the economic recovery starts to see an uptick on both sides of the border. One of the biggest beneficiaries of this increased economic activity could be the airline sector.

After navigating through the worst operating environment in history in 2020, wrought on by the pandemic, the airline industry now appears poised for a takeoff. The easing of travel restrictions and abatement of fears of contagion will pave the way for substantially more leisure and business travel over the summer and beyond. According to an International Air Transport Association (IATA) projection, airline revenue is expected to see a significant rebound in 2021. While things can change depending on virus mutation and governments’ management of vaccine distribution, for now, though, the world airline association forecasts passenger numbers to grow to 2.8 billion in 2021, a billion more travellers than in 2020, although still 1.7 billion travellers short of 2019. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Air Canada Class B23.06 CAD1.68Rating
Delta Air Lines Inc41.59 USD3.05Rating
Southwest Airlines Co50.65 USD3.05Rating
United Airlines Holdings Inc45.68 USD2.77Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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