U.S. Could See Record Labor Day Travel: Buy These Airline Stocks
Zacks Investment Research | Sep 01, 2017 12:00AM ET
This Labor Day weekend is likely to see high air travel, fueled by affordable ticket prices. A strong economy and low jobless rate are also encouraging Americans to book trips for the last big travel weekend this summer.
With this combination, investors should consider airline companies positioned to grow on the back of this near-term surge in travel demand.
Airlines Expecting Record-High Travel
According to Airlines for America (A4A), U.S. airlines are expected to see 16.1 million passengers take to the skies, marking a 5% increase in air traveler count over last year. John Heimlich, chief economist at A4A, which represents most of the large carriers, said that “we believe this period to be an all-time high, and we expect the year to be an all-time high.” U.S. airlines carried a record-breaking 823 million passengers last year, as per the U.S. Department of Transportation’s Bureau of Transportation Statistics.
Around 110,000 passengers a day will be traveling by air starting August 30 through September 5, according to the group. Domestic travel is expected to drive most of the increase, while the best time to travel on any day during the weekend is between 4 p.m. and 10 p.m., as per AirHelp. Some of the busiest airports are expected to be Hartsfield-Jackson Atlanta International Airport, Chicago O’Hare International Airport, Dallas/Fort Worth International Airport, Denver International Airport and Los Angeles International Airport (also read: Zacks Investment Research
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