The resurgence of COVID-19 cases has started to dampen the demand for leisure travel. Many U.S. airline operators expect the virus’ Delta variant to undermine the industry’s recovery prospects through the fall. Thus, the shares of well-known airline carriers Delta (DAL) and Alaska Air (NYSE:ALK) are expected to remain under pressure. But let’s discuss if either of these stocks is a buy at its current price level considering the industry’s long-term growth prospects. Read on.Delta Air Lines, Inc. (NYSE:DAL) in Atlanta, Ga., and Alaska Air Group, Inc. (ALK) in Seattle, Wash., are two popular airline operators in the United States. DAL provides scheduled air transportation for passengers, freight, and mail over a network of routes worldwide. It offers flight status information, bookings, baggage handling, and other related services. In comparison, ALK provides passenger and cargo air transportation services. The company operates through Mainline; Regional; and Horizon segments.
Although 50.3% of the U.S.’ vaccination eligible population is now fully vaccinated for COVID-19, the demand for leisure travel, which increased earlier this summer, has started to decline with the rapid spread of the COVID-19 Delta variant. In fact, many airline operators expect the resurgence of COVID-19 to darken the industry’s recovery prospects through the fall. So, both DAL and ALK could witness a decline in passengers in the coming months.
While DAL’s stock has gained 17.9% in price over the past nine months, ALK has surged 34.1%. ALK is also a clear winner with 52.5% gains versus DAL’s 39.3% in the past year’s performance. But, given the industry's near-term prospects, are either of these stocks worth buying now? Let’s see how they compare in terms of financials and growth prospects.