Airlines are preparing for what’s expected to be record air travel this coming Labor Day weekend.
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The Transportation Security Administration (TSA) said it expects to screen 17.4 million people at U.S. airports between Aug. 28 and Sept. 3. That includes a projected 2.91 million people on Aug. 29, which is forecast to be the biggest airport travel day over the weekend. Labor Day is on Sept. 1 this year.
This year’s forecast tops the 17.03 million people who traveled by air over the Labor Day weekend in 2024, which was then the busiest ever for the September holiday, according to the TSA. The crush of air travelers means brisk business for the biggest U.S. carriers such as American Airlines (AAL), United Airlines (UAL), and Southwest Airlines (LUV), among others.
Travel Rebound
The summer travel season this year has been strong, leading to a rebound in air travel after the doldrums experienced during the Covid-19 pandemic. The Federal Aviation Administration (FAA) says that, as of the week of Aug. 18, it had seen more than five million flights since the summer officially began with the Memorial Day weekend in May, “making it the busiest summer in 15 years.”
The strong summer is likely to give the financial results of leading airlines such as American, United, and Southwest a boost in coming quarters, say analysts. That would be welcome news for both the carriers and their stocks, both of which are still recovering from the pandemic when planes were grounded or forced to operate at reduced capacity.
American Airlines, the world’s biggest carrier, has seen its stock decline 25% this year.
Is AAL Stock a Buy?
The stock of American Airlines has a consensus Moderate Buy rating among 13 Wall Street analysts. That rating is based on five Buy, seven Hold, and one Sell recommendations issued in the last three months. The average AAL price target of $14 implies 7.16% upside from current levels.
