Discount Airlines Tap Stock Market as Investors Bet on Travel Recovery

As air travel shows more signs of rebounding from its pandemic lows, airlines that focus on offering cheap fares to leisure travelers are cashing in on the stock market.

Frontier Group Holdings Inc.’s initial public offering raised $570 million after shares of the Denver-based budget carrier were priced at $19 each. Sun Country Airlines Holdings Inc., which largely flies Midwesterners to sunny vacation locales, raised more than $250 million in its initial public offering in March.

U.S. airlines lost some $35 billion last year, and most are still losing money. But the stock-market offerings are a sign that investors are

read more

Investors Shouldn’t Rush to Book a Sunny European Vacation

For many European airlines—and some entire economies—much is riding on the hope that vaccination campaigns save the summer season. Too much, in fact, for investors’ comfort.

Just a few weeks ago, financial markets were feeling optimistic about the tourism industry, carriers in particular. Airport passenger numbers in the U.S. have jumped. Global booking data tracked by analysts point to a big revenue improvement in May, driven by online travel agents.

This seems to confirm theories that there is a lot of pent-up demand. In the U.K., airlines reported a surge in bookings to southern Europe right after Prime Minister Boris

read more

Millennial Airline Investors Are Up Double Since Buffett’s Departure

One year ago this month, our world changed in some pretty dramatic ways.

Take the stock market. Stuck at home and $1,200 richer thanks to the first coronavirus relief bill, millions of millennials and Gen Zers tried their hand at investing for the very first time. It’s estimated that some 10 million new brokerage accounts were opened in 2020, a record. Robinhood, the commission-free trading app, signed up 3 million new users in the first four months alone.

There are signs that these “amateur” investors aren’t going away any time soon. According to Credit Suisse, retail investors now account

read more