Shares of leading US airlines and Delta are poised to soar in 2025 News ad

As we head into the final few weeks of the year, it’s time to think about the 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 some volatility in the first half of the year, airline stocks as a whole, as seen in American ETF Global Jets NYSEARCA:JETSare on track to finish the year on the front foot. The ETF is up more than 50% since August, and while it hasn’t quite reached 2021 levels yet, it’s almost within reach of its post-pandemic high.

The good news for investors is that the global airline industry is expected to have a record year in 2025, with profits and passenger numbers forecast to soar to new heights. Revenues will top $1 trillion for the first time, driven by strong demand in both the passenger and cargo markets, according to the International Air Transport Association (IATA). Analysts expect airline profits to rise sharply despite ongoing challenges such as supply chain disruptions and rising costs.

Passenger growth is the main driver of this dynamic, with forecasts showing a nearly 7% year-on-year increase, while air cargo revenues are also expected to do well. Margins have been improved by cost controls, lower oil prices and strong demand for premium and corporate travel, and these trends are expected to continue into 2025. Let’s move on to two airline stocks worth paying attention to.

American Airlines shares are expected to rise 30% from current levels

Coming close to record lows in early August, stocks american airlines group, Inc. NASDAQ: AAL in fact, they only went in one direction: up. Shares are up almost 100% in just four months, a stunning turnaround 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, with American Airlines posting its highest-ever quarterly revenue this year. It’s clear that the stock is doing well, and there are many reasons to believe it will continue to do so.

Having already won over many analysts with bullish ratings in recent weeks, the Bernstein team upgraded American Airlines from Market Perform to Outperform on Tuesday while setting a new $24 price target for the stock. This was echoed on Wednesday morning by Morgan Stanley, which reiterated its outperform rating and also raised its price target.

On the morning of December 11, American Airlines shares were trading at $17, indicating a target upside of more than 30%.

Delta Air Lines Near Record Results After Rollercoaster Year

As an American Delta Air Lines, Inc. New York Stock Exchange: DAL Stocks have also been on a rollercoaster ride this year. However, they look set to finish on a literal high, and have already set a record this month. As part of a broad bullish stance on the airline industry as a whole, the UBS Group team recently initiated coverage of Delta Air Lines shares with a Buy rating. That was in line with similarly optimistic forecasts from Citigroup, Goldman Sachs and Barclays last month.

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

The team’s target price is $88. speaks for itself as it indicates target growth potential by 40% from the current level. It’s worth noting that while American Airlines stock has been rallying higher from its highs in recent weeks, Delta stock is definitely looking a little deflated as it has been consolidating and trading sideways for the past month.

However, the fact that they managed to achieve a record close last week suggests that there is demand for their shares, and it makes sense that they may just want to take a break. Investors should expect the stock to close above $67 as this will all but confirm the resumption of the rally and continuation of the uptrend.

Before you consider Delta Air Lines, you need to hear this.

MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes hold… and Delta Air Lines wasn’t on the list.

While Delta Air Lines currently has a Buy rating among analysts, the top-rated analysts rate these five stocks as Outperform Buys.

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