American Airlines (NASDAQ:AAL) and Delta Airlines (DAL) reported contrasting results in Q3, especially when you compare the profit margins of the two companies. While American Airlines had to bank on federal benefits to end Q3 with a positive net income, Delta Airlines did so without the help of government grants.The airline industry was among the worst-hit amid the COVID-19 pandemic, as borders were closed and lockdowns were imposed all over the world. But the rollout of vaccinations has ensured that restrictions were relaxed, providing relief to airline companies.
As the global economy reopens, companies including American Airlines Group (AAL) and Delta Air Lines (NYSE:DAL) are well poised to benefit from pent-up travel demand, which will boost revenue growth in the next few quarters.
Let’s see which of these two airline stocks is currently a better buy.