CNBC’s Jim Kramer on Monday offered two shares of airlines that he said investors should take for their portfolios.
“There is always a bull market somewhere and it is currently flying at 30,000 feet. My favorites are the two most profitable, that’s it [Delta Air Lines] and [Alaska Air Group]. Just be sure to call the registry gradually on the way up, because remember that these are airlines. They tend to be an industry with a lot of boom and bust, “said the host of” Mad Money “.
Shares of Delta fell 0.96% on Monday, while shares of Alaska fell 0.19%.
Delta said earlier this month that it expects unit revenue to double in the second quarter from before the pandemic three years ago. The company also expects total sales to recover to 97% of 2019 levels
CEO Ed Bastian told Squawk Box after the company’s last quarterly results that the airline had its highest monthly sales in March and that the trend continued in April.
“I’m still stunned,” Cramer said of Bastian’s comments.
Alaska set a sales record in March, but cut its schedule by 2% by the end of June due to a shortage of pilot projects.
“Although they are not among the main ones, it is extremely well managed, however, with a much larger mix of leisure travelers compared to business ones,” Kramer said.
“The only problem with these stocks is that everyone knows that Alaska Air is one of the strongest players in the industry, which makes it harder to deliver a rising surprise. That’s why stocks are actually a few dollars lower than where they were traded before the quarter, “he added.
Kramer said that although there is a bullish market in airlines, there are several companies whose shares investors should avoid.
“I would turn away from the companies involved in the bidding war for Spirit Airlines – JetBlue, Frontier and Spirit itself,” he said.
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