Even though the resurgence of COVID-19 cases could hinder the airline industry’s rebound, the demand for air travel has been rising rapidly as more people are vaccinated. So, we think it could be wise to scoop up quality airlines stocks Alaska Air (NYSE:ALK) and SkyWest (NASDAQ:SKYW).Governments worldwide have reinstated lockdown and social distancing measures to limit the spread of the highly transmissible COVID-19 Delta variant. Nevertheless, most airline operators have been witnessing solid leisure travel demand of late.
Several airlines have been hiring pilots and other workers to meet a surge in demand. In addition, the Transportation Security Administration (TSA) is screening roughly two million passengers per day at airports. Furthermore, as more people get vaccinated, airline companies should continue witnessing increasing demand for their services.
Given this backdrop, we think it could be wise to bet on fundamentally sound airline companies Alaska Air Group, Inc. (ALK) and SkyWest, Inc. (SKYW). These two stocks look like bargains at their current prices, considering their immense growth potential.