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Although a strong vaccination drive helped the airline industry witness an uptick in demand earlier this year, the resurgence of COVID-19 cases will likely darken the industry’s outlook through the fall. According to the International Air Transport Association (IATA), the industry is expected to suffer a $47.70 billion overall loss in 2021. However, an anticipated increase in vaccination rates across the country with the FDA’s full approval yesterday of Pfizer-BioNTech’s two-dose vaccine should help the industry return to its recovery path. Therefore, both AAL and SKYW could witness a solid recovery later this year or early next year.
While SKYW has gained 2.9% in price year-to-date, AAL has surged 21.2%. In terms of their past year’s performance, AAL is a clear winner with 57.2% gains versus SKYW’s 38.3% returns. But, which of these stocks is a better pick now? Let’s find out.
