2024 may turn out to be a strong year for travel demand, potentially breaking pre-pandemic records. Airlines stand to capitalize, making them a viable option for investor portfolios.
Citi Managing Director and Equity Analyst Steve Trent joins Yahoo Finance’s Julie Hyman for the latest edition of Good Buy or Goodbye where he provides insight into the investment outlook for the travel industry for 2024.
Trent states his “Good Buy” is Delta Air Lines (DAL). Its loyalty program is robust, with an already large customer pool, that makes up a sizable piece of Delta’s revenue. Trent argues that Delta has one of the strongest brands against other airlines, citing success despite the lower travel demand during the pandemic. He continues saying Delta can best capitalize on changing consumer habits in travel with the advent of remote work and buying experiences.
Trent states his “Goodbye” stock is JetBlue (JBLU). He believes one of the top reasons to avoid this stock is due to its merger with Spirit Airlines (SAVE) which has “difficult” financials. Recently, the airline has been offering no-frills and discount options, which, according to Trent, “have done worse in the current environment than they used to.” In addition, an unknown number of its aircrafts have issues with the geared turbofan engine which will take considerable time to fix.
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