What does industry consolidation mean for airline stocks?

Industry consolidation means that stronger airlines (like Delta and United) are gaining market share and financial strength while weaker competitors struggle. This creates a two-tier market where the leaders can maintain higher prices, stronger customer loyalty, and better financial results. For investors, this means the gap between winners and losers in the airline industry is growing, potentially creating more stable investment opportunities in the sector's top performers.

How do strategic partnerships work in the airline industry?

Strategic partnerships in the airline industry create networks of interdependent companies. For example, major carriers like Delta and United work with regional airlines that operate smaller routes under their brands. They also form relationships with aircraft manufacturers, component suppliers, and maintenance providers. Even loyalty programs involve partnerships with credit card companies. When market leaders like Delta and United perform well, their partners benefit from more stable contracts, increased service demand, and potential growth opportunities.

What are regional carrier partners and why are they included?

Regional carrier partners are smaller airlines (like SkyWest and Mesa) that operate flights on behalf of major airlines under brands like "United Express" or "Delta Connection." They typically handle shorter routes with smaller aircraft that connect smaller cities to the major airlines' hub airports. These partnerships allow major airlines to expand their network without operating the smaller aircraft themselves. As the major airlines succeed, their regional partners typically benefit from more stable contracts and passenger volume, making them potentially interesting investment opportunities connected to the success of industry leaders.

What is dividend yield and why does it matter for airline stocks?

Dividend yield represents the annual dividend payment as a percentage of a stock's current price. For example, a $2 annual dividend on a $100 stock gives a 2% yield. In the airline industry, dividends have historically been rare because airlines needed to reinvest profits into new aircraft and operations. However, as industry leaders like Delta become more financially stable, some have started paying dividends, which can provide income to investors beyond just stock price appreciation. A dividend payment signals management's confidence in the company's financial stability and future prospects.

15 handpicked stocks

Airline Market Leaders and Strategic Partners

This carefully curated group of stocks captures the aviation industry's standout performers and their key partners. Professional analysts have selected these companies based on their market dominance, growth potential, and strategic positioning in the evolving airline ecosystem.

Han Tan | Market Analyst

Published on July 20

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Delta Air Lines Inc.

DAL

Current price

$57.08

Delta Air Lines has demonstrated superior profitability and strategic strength in a tough market.

United Continental Holdings, Inc.

UAL

Current price

$94.83

United Airlines is outpacing rivals with strong performance and strategic partnerships.

SkyWest Inc

SKYW

Current price

$100.07

SkyWest operates as a critical regional partner for major airlines including Delta and United.

Boeing Company, The

Current price

$217.43

Spirit AeroSystems Holdings, Inc.

SPR

Current price

$39.12

TransDigm Group Incorporated

TDG

Current price

$1,283.81

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+9.22%

≈

About This Group of Stocks

Our Expert Thinking

This collection focuses on a fundamental shift in aviation where Delta and United Airlines are significantly outperforming competitors. Their superior profitability creates a ripple effect of opportunity for their strategic partners across the aerospace supply chain.

What You Need to Know

The aviation sector is experiencing consolidation where the strongest players are pulling ahead. These stocks represent both industry-leading carriers and the ecosystem of manufacturers, suppliers, and partners that benefit directly from their continued success.

Why These Stocks

We've selected companies that form a virtuous cycle of market leadership. This includes top-performing airlines with diversified revenue models and strong brand loyalty, alongside the specialized suppliers positioned to capitalize on their market dominance.

Group Performance Snapshot

9.22%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 9.22% over the next year.

14 of 15

Stocks Rated Buy by Analysts

14 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🔄

Industry Transformation Underway

The airline industry is experiencing a major shift where the strongest players are pulling ahead. This consolidation creates opportunities for both the leaders and their key partners.

🚀

Profit While Others Struggle

While some airlines report losses, Delta and United are showing strong profits. Their success flows directly to strategic partners, creating a network of companies positioned for potential growth.

🤝

The Power of Partnerships

These stocks represent an interconnected ecosystem where success breeds more success. From aircraft manufacturers to regional carriers, each company benefits from the strength of industry leaders.

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