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Airline Stocks: is it a Market Opportunity?
Published on Dec 30, 2020


The airline industry is considered to be a crucial part of the economy. It historically moves with the economic cycles, which made multiple companies declare bankruptcy and failure due to the past downturns in the economy and caused multiple mergers and acquisitions. Today, four airlines control about 80% of the U.S. market; American Airlines, Southwest Airlines, Delta Airlines, and United Airlines.

The COVID-19 pandemic has threatened the industry, affecting its revenue to fall 90% year-over-year during the second quarter of 2020. This was due to the decline in travel demand, yet it did not lead to the declaration of bankruptcy. Moreover, a 50% of reduction in the stock value took place, not to mention that others have suffered even more as the pandemic is spreading globally with no cure, and the vaccine is still showing side effects and is not widely distributed.

Airlines have managed to raise more than $50 billion in private funding, in addition to government aids during the first half of this year.

Below are the four company stocks that dominated the market share of leading U.S. airlines for the last year.