SA Asks: What are the best airline stocks right now?

American Airlines flight preparing for landing at Chicago O"Hare international airport

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What are the best airline stocks right now?

We asked Seeking Alpha analysts Harrison Schwartz and Dhierin Bechai for their picks.

Dhierin Bechai: I believe the best picks in the U.S. right now are the mainline carriers. Delta Air Lines (NYSE:DAL) remains a solid pick with strong cabin segmentation and co-branding. United Airlines (NASDAQ:UAL) is likewise following that path, which also makes it attractive, while American Airlines (NASDAQ:AAL) could benefit from improving sentiment as trade tensions ease. Among regional airlines, I remain bullish on Skywest (NASDAQ:SKYW).

Internationally, LATAM (NYSE:LTM) came out of bankruptcy restructuring in strong fashion, while the Ryanair (NASDAQ:RYAAY) and Wizz Air (OTCPK:WZZAF) have significant growth opportunities on the condition that Boeing (NYSE:BA) and Airbus (OTCPK:EADSF) (OTCPK:EADSY) can keep a smooth delivery pace to them.

Harrison Schwartz: I believe the best airline stock currently is SkyWest (NASDAQ:SKYW), due to its strong competitive moat as a leading charter airline. However, within the group of larger airlines, I’d pick Delta (NYSE:DAL). Although Delta’s (DAL) valuation is higher than its peers, it benefits from consumer bifurcation trends as the dominant premium airline, giving it an edge in a highly competitive market.

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