Here’s Why Analysts Say It’s a Good Time to Buy Airline Stocks [Video]

Analysts are increasingly bullish on airlines going into 2025, with the major U.S. companies fighting to build brand loyalty in a strong demand environment. 

Deutsche Bank raised its earnings projections this quarter for 10 of the 11 U.S. airlines it covers in a note Wednesday, writing that airlines “are now competing on service rather than price” with the introduction of premium product offerings to attract customers.

“We think the de-commoditization of air travel is not only good for customers, but can be good for the bottom-line and provide stability to the industry,” the bank added. 

The news helped lift shares of the S&P 500’s airlines industry, which was recently up more than 1%. The U.S. Global Jets ETF (JETS), which includes airline shares, also rose.

Morgan Stanley likened airlines’ strategies to the business models of companies that sell smartphones and razors, with brands competing to earn customer loyalty and use that to …