If the monstrous attacks on Israel staged by Hamas weren’t bad enough on their own, they’re also having a depressing effect on airline stocks. Many are in open decline, some catastrophically, in the face of canceled flights and a largely choked-off point on the world map.
Major airlines like United Airlines (NASDAQ:UAL), American Airlines (NASDAQ:AAL), and Delta Air Lines (NYSE:DAL) were all down nearly 6% at one point in Monday morning’s trading, and they were far from alone. Finnair (OTHEROTC:FNNNF) was down over 26%, and EasyJet (OTHEROTC:EJTTF) slipped nearly 4.5% after shuttering flights at various levels. United, American and Delta all suspended direct flights into Israel, as did Finnair. EasyJet, however, halted flights only to Tel Aviv, while also modifying flight timing, and planning to continue to do so over the next few days.
This came after several government agencies—including the United States’ Federal Aviation Administration, the Aviation Safety Agency in Europe, and Israel’s own aviation authority—recommended that all airlines be cautious about flying into Israel. There were no officially suspended flights, however, but some routes were changed and all airlines were advised to maintain extra fuel supplies to prevent potential difficulty. There is also the potential for sudden fuel price hikes, which is weighing on airlines. That comes at an especially bad time as an increasingly wary consumer cuts back on spending.
What Airlines are a Good Stock Buy?
While many airline stocks are getting hit today, some are taking harder hits than others. That’s actually served to expand upside potentials, however, especially if things can be resolved quickly. Right now, American Airlines has the lowest upside potential. This Hold-rated stock comes with 36.9% upside potential on its average price target of $16.49. However, United Airlines, a Moderate Buy, offers 73.18% upside potential thanks to its average price target of $68.13.
