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Can airline stocks overcome the great plane delay?

Attractive valuations mean the sector is still worth considering and there are signs supply constraints are easing
Can airline stocks overcome the great plane delay?Published on January 16, 2025
  • Supply chain risks remain a significant threat
  • Passenger growth of 7 per cent forecast

Airline stocks enjoyed mixed fortunes in 2024, as resilient post-pandemic travel demand rubbed up against commercial plane supply chain headwinds. Looking ahead to the next 12 months, certain operators again look set to fly higher than others.

Signs of sector weakness are easy to find – Florida-based budget operator Spirit Airlines fell into bankruptcy in November on the back of mounting losses and a blocked merger with JetBlue (US:JBLU), while challenges at key manufacturers Boeing (US:BA) and Airbus (FR:AIR) continue to cause significant delays to deliveries of new planes. This is part of the reason why there are undemanding ratings on offer at some leading stocks.

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