Despite a challenging macroeconomic environment, the airline industry thrives due to the travel demand revival. Airliners are achieving strong growth in their topline as demand surpasses pre-Covid levels. The comeback of international travel may challenge domestic-focused airlines, but overall, airliners expect expanding profit margins thanks to sustained robust travel demand.
Amid this backdrop, buying fundamentally strong airline stocks Deutsche Lufthansa AG (DLAKY) and Air Canada (ACDVF) could be wise. However, Virgin Galactic Holdings, Inc. (SPCE) might be best avoided due to its weak fundamentals.
