Losses are still staggering for major airline companies, but easing travel restrictions could mean that this is the time to get into airline stocks.
Travel restrictions have recently been eased all over the world, including in European countries like Denmark and France. The Oceania region is easing up restrictions as well, with New Zealand and Australia opening up borders.
Air travel has been more lax and is trending towards a grand return with vaccines steadily rolling out all over the world.
Aviation giant United Airlines recently came out with its quarterly earnings report. Earnings per share were disappointing to say the least, but during these times it’s to be expected. The airline recorded losses of $7.50 per share compared to a forecasted $7.08 loss per share. Revenue is down from around $8 billion to $3.22 billion quarter on quarter, resulting in a quarterly net loss of $1.36 billion.
But looking at the bigger picture, airlines, in general, are making a gradual comeback since the pandemic hit. Airlines ETF (NYSE: $JETS) reached highs of around $29 last month while giving back major losses after United’s disappointing earnings. Pre-pandemic numbers valued the ETF at around $30, and there may be a little more space to grow for the ETF as travel restrictions ease up all over the world.