Should You Buy U.S. Airline Stocks After Stimulus?

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Mar 26, 2021 (Baystreet.ca via COMTEX) — The airline industry has been pummeled during the COVID-19 pandemic. However, there is renewed optimism as the United States pushes forward with its impressive vaccine rollout.

Better yet, the Biden administration passed through its first major legislative accomplishment: the $1.9-trillion COVID-19 relief bill. Should investors look to scoop up airline stocks as a global recovery appears to be on the horizon?

American Airlines Group (NASDAQ:AAL) is a Texas-based airliner. Its shares have climbed 50% in 2021 as of close on March 25. This pushed the stock into the black for the year-over-year period. The company posted a full-year net loss of $8.9 billion in 2020. American Airlines stock is still trading below the industry average. It is worth snatching up in this climate.

Delta Air Lines (NYSE:DAL) is a Georgia-based airline. Its stock has increased 21% in 2021 so far. Meanwhile, shares of Delta have climbed 48% from the prior year. The company has projected that it will turn a profit once again by the summer of 2021. It lost a record $12.39 billion in 2020. Shares of Delta are also trading below the industry average.

Southwest Airlines (NYSE:LUV) is another Texas-based airline. Its stock is up 33% in 2021 and has climbed 45% from the prior year. The company reported an annual net loss of $3.1 billion or $5.44 per diluted shares in 2020. Like its peers, it is also trading in favourable value territory. Investors should be eager to bet on a sharp rebound in this promising sector.

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