The airline industry is on a flight path for higher altitude this year, as economic recovery fuels demand for travel among newly confident consumers.
Last year, the industry racked up revenue of $637 billion and earnings of $6.7 billion. Despite these gains, stocks of the strongest carriers are trading at attractive valuations, making this a good time to grab a cheap seat on the sector's upward trajectory. Below, we look at two of the most promising airlines.
Delta Air Lines (DAL)
Delta, the world's second-largest airline, commands a growing domestic and international presence.
To cost-effectively propel its expansion, Delta last year launched an ingenious remedy to high fuel costs that stunned both the oil and airline industries: The airline bought a refinery. Fuel represents roughly a third of an airline's operating costs, a burden that has been rising for the last decade.
Delta recently made other bold moves. On May 24, the airline opened a new $1.2 billion terminal in New York City's JFK International Airport that will provide a launching pad for wider service to emerging markets.
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