Airline stocks to watch in 2021

Recognised as one of the world’s most prominent ‘no frills’ airlines, Southwest Airlines was founded in 1967, in America. The Dallas-based company originated as an intrastate airline, flying between Dallas, Houston and San Antonio. It now stands as one of the largest carriers of domestic passengers in the United States. Southwest flies to several countries, to over 100 destinations within the United States, and in 2020, declared plans to expand to further airports. It has over 700 Boeing 737 planes in its fleet, making it one of the largest operators of its kind worldwide.

Atlanta-based Delta Air Lines is one of the main airlines in the United States. It is a legacy carrier, which means that it established its routes before the establishment of the Airline Deregulation Act in 1978. It operates flights to over 50 countries around the world, spanning six continents. Airbus and Boeing are Delta’s fleet manufacturers and it is also one of America’s highest operators of the Airbus A330. After strongly emerging from bankruptcy in 2007, Delta restructured and went on to acquire Northwest Airlines in 2008, which fully merged and integrated into Delta Air Lines in 2010.

Air China is a major airline and a member of the ‘Big Three’ airlines in China. In 1987, the Chinese government made the decision to divide the Civil Aviation Administration of China (CAAC Airlines) into individual airlines. Consequently, in 1988, Air China was established, along with five other airlines. It took on the CAAC’s long haul fleet and the reins for intercontinental flights. In 2002, Air China merged with China Southwest Airlines and China National Aviation Holding, and in 2004, it became listed on the London and Hong Kong stock exchanges. Its impressive fleet consists mainly of Boeing and Airbus aircrafts.

Ryanair Holdings is made up of several airlines, Ryanair DAC being the largest and most prominent, with its success being built upon its low-cost business model. The renowned budget airline was established in Ireland in 1984 and primarily operates in London Stansted and Dublin airports. Since going public in 1997, the airline benefited greatly from the EU Airline Deregulation and it has gone on to become one of the largest budget airlines in Europe. Ryanair flies to a range of countries across Europe, the Middle East and North Africa.

Headquartered in Illinois, United Airlines is a major airline company in the United States. Due to its impressively large fleet and route network, United Airlines is considered one of the largest airlines in the world. Its route network covers cities across the United States and all six continents. It is also a founding member of the largest airline alliance, the Star Alliance. In 1931, United Air Lines was established as a holding company for several airlines. A merger between United and Continental Airlines resulted in a change of name to United Continental Holdings, which was then changed again, in 2019, to United Airlines Holdings.

Following a restructure of CAAC Airlines, China Southern Airlines was founded in 1988. It is made up of two main business divisions; the Airline Transportation and Other. Airline Transportation includes passengers, cargo and mail. The Other segment consists of several operations, including hotel and tourism services. It has the largest fleet in Asia and is recognised as one of the world’s largest airlines in terms of carried passengers. In 2019, China Southern Airlines aligned with American Airlines to create a frequent flyer partnership. The company flies to over 190 destinations across the world and proudly promote the slogan ‘Fly into your dreams’.

American Airlines is a major airline with one of the largest aircraft fleets in the world. It originated in 1924 and was rebranded as American Airlines in 1934. The company went on to expand exponentially, and in 2001, it purchased Trans World Airlines. It merged with US Airways in 2013, resulting in the creation of one of the largest airlines in the world. The airline flies to a vast amount of domestic destinations and countries all over the world across five continents. As of 2019, the airline had almost 130,000 employees, and on an annual basis, it deals with over 200 million passengers.

Singapore Airlines is recognised worldwide as a major airline and is the flag carrier airline of Singapore. Its origins date back to the formation of Malayan Airways Ltd in 1947, and in 1972, Singapore Airways became established. With a route network of over 90 cities across the world, the company owns a vast fleet, consisting of Boeing and Airbus aircraft. Singapore Airlines’ headquarters are based in Changi Airport in Singapore, and Temasek Holdings and the Singapore government are its majority owners.

As one of the founding members of the Star Alliance, Deutsche Lufthansa is the largest German airline. Lufthansa owns a range of aviation companies and several subsidiary airlines. The group’s airline fleet is one of the largest in the world with over 700 aircraft. The long-haul fleet consists of some of the most environmentally friendly aircraft, such as the Boeing 747-8 and the Airbus A380. Since 1966, traders have been investing in its shares on the German stock market, and up until 1994, it was state owned as Germany’s flag carrier. Lufthansa operates flights domestically and to cities across the globe.