While airline stocks have benefitted significantly from the pent-up travel demand, the sector continues to grapple with challenges threatening to weigh down demand. In this context, I have discussed why investors should watch and wait for an entry point in Allegiant Travel Company (ALGT), while fundamentally weak airline stock Virgin Galactic Holdings, Inc. (SPCE) could be best avoided.
Despite economic ambiguity and dwindling household savings, the post-pandemic travel surge showed no signs of slowing down. Ticket costs remain high, indicating a strong momentum that is likely to continue throughout the upcoming year.
