3 Airline Stocks That Could Benefit From Leisure-Led Recovery - Allegiant Travel (NASDAQ:ALGT), Alaska Air Group (NYSE:ALK)

ABofA Securities survey of U.S. consumers supports a thesis that three airliners will benefit from a domestic and leisure-led recovery.

The Analyst: Andrew Didora maintains a Buy rating on Alaska Air Group, Inc. (NYSE:ALK) with an unchanged $53 price target.

The analyst also maintains a Buy rating on Allegiant Travel Company (NASDAQ:ALGT) with an unchanged $140 price target and a Buy rating on Southwest Airlines Co (NYSE:LUV) with an unchanged $44 price target.

The Thesis: BofA surveyed more than 4,500 consumers across the U.S. from May 28 through June 7. Here are some of the key findings.

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ABofA Securities survey of U.S. consumers supports a thesis that three airliners will benefit from a domestic and leisure-led recovery.

The Analyst: Andrew Didora maintains a Buy rating on Alaska Air Group, Inc. (NYSE:ALK) with an unchanged $53 price target.

The Thesis: BofA surveyed more than 4,500 consumers across the U.S. from May 28 through June 7. Here are some of the key findings.

Among those surveyed, 70% plan to take a leisure vacation, and 39% of those respondents expect to fly.
One out of three travelers who fly at least once a year for business plan on taking a business trip within three months.
Sixty-two percent of business travelers expect to travel by the end of the year.
Only 32% of those surveyed plan on traveling internationally within six months.
This implies that a return in international travel demand will notably lag the domestic recovery.
More than half of people surveyed are comfortable traveling by plane when restrictions are lifted, even if there is no readily available vaccine.
However, 24% of people aren't comfortable flying without a vaccine, and this implies it will take several years for air traffic to return to 2019 levels.

ALGTAllegiant Travel Co

$82.48-%

Overview

ALKAlaska Air Group Inc

$43.350.21%

LUVSouthwest Airlines Co

$43.140.26%

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