By: Katie Gomez 

Travel, especially international, is a luxury not all can afford unless it’s Travel Tuesday! Black Friday might have passed us by, but avid travelers will be happy to hear that Travel Tuesday will offer much better deals on airfare, hotels, and other travel-related booking on December 3rd. Given the buzz this day is creating, this hidden secret is making its way to becoming an internationally known holiday. Every year, the date changes on this remarkable savings day for travel companies, and this year, it happened to fall the Tuesday after Thanksgiving/Black Friday, tis the season!

The stock market has followed this jubilant sentiment, causing spikes in certain travel sectors. So, even if you’re not planning on booking your next vacation, this week will be a prime opportunity for traders to take advantage of the momentum following these travel companies. In this article, I will explain which three top airlines to keep an eye on as traders as we celebrate this year’s Travel Tuesday Savings Palooza.  

The stock market has been roaring since Trump’s White House victory, and Travel Tuesday news has been riding that wave of momentum, with certain airlines at the forefront picking up speed and soaring to new heights, namely Delta (DAL) and United (UAL). These airline stocks hit all-time highs as the broader market rose after Trump’s election. Wildly beating last year’s numbers, both airlines have surpassed the S&P 500’s gain (GSPC) of more than 25% ) with United gaining 60% and Delta at 134%). Not to mention, American Airlines (AAL), another company advertised to be taking part in TravelTravel Tuesday promotions, has gained roughly 6% during the same period, rallying 50% in the last three months. (US News, 2024). 

Even lower-tiered airline companies such as Jetblue (JBLU) and Frontier (ULCC), also known as the super saver flights, known for their cheap tickets, expensive add-ons, and less-than-average service, have seen an increase in stock share value. All air travel is seeing this trend as airports hit peak capacity during Thanksgiving, reaching an all-time high of travelers, higher than any holiday season has ever seen! Transportation Security scouted nearly 20 million people who were traveling this week.

However, given that American, Delta, and United are all on the shortlist for Travel Tuesday promotions, industry watchers are predicting even higher values for these companies in December. Even though this industry has faced challenges this year such as higher maintenance costs and increased pilot wages, reports still predict these airlines to have a strong end-of-year finish. Retail and swing traders should consider diversifying their portfolio with one of these companies before jetting off to any winter vacations or signing off the market for family time this Christmas. 

Premium travel boosts

Besides getting better deals on regular flights, Travel Tuesday also highlights the broader premium travel market and how this up-and-coming addition to certain companies is revolutionizing airline travel. Many take advantage of this sale to trade in their economy tickets for premium or business class tickets. These deals offer the ability to travel and do so with perks such as extra legroom, refundable tickets, and early boarding. Analysts expect the higher margins from such offerings to boost earnings, which could lift stocks.

United (UAL)

At $96.35, United Airlines (UAL) is leading the charge of these Travel Tuesday deals and is predicted to reap the most benefits once their promos are released to the public. Larger carriers like United have increased their market share via more domestic routes. Tom Fitzgerald recently picked United as “the Best Idea of 2025, based on its domestic share gains, increasing corporate traffic, and maturing international routes.” The analyst raised his price target on the stock to $125 from its previous standing value of $100. He explained how the outlook for this broader industry has materially improved since mid-year due to substantial decreases in domestic capacity and fuel prices and macroeconomic demand that looks to remain resilient in 2025. (Ferré, 2024).

Delta (DAL)

Right being United, Delta is riding the same momentum wave, currently trading at $64.14 per share. Delta CEO Ed Bastian claimed the premium consumer is doing well, highlighting the importance of millennials as the fastest-growing customers in the travel spend category, especially following Travel Tuesday deals. Not to mention the convenience of pre-boarding, lounge access, and no last-minute changes fees are all lighting the way for more business this Travel Tuesday, sending their end-of-year numbers to new highs. Revenue growth from these newly added premium seats may help the airline get its wings back above water since COVID-19, operating at a margin of 14%. “Travelers are flocking to more expensive seating because of convenience and reliability,” said M&N Aviation airline consultant Sebastian Domaradzki. (Ferré, 2024). 

American Airlines 

Right behind United and Delta is American Airlines, with a share price of $14.64. It is another prime pick this holiday season, with its premium revenue rising 8% year over year in the third quarter. American CEO Robert Isom also talked with analysts during last month’s earnings call about the type of customers driving these airline companies to peak value: Millennials. 

He expressed his optimistic outlook for the future of American Airlines, as he believes he understands his customers and what they are looking for. Isom explains how Millennials continue to flock toward premium travel despite inflation struggles, as they want more control over their traveling experience and are willing to pay the difference to accommodate that need. While more expensive seating and luxury add-ons might not appeal to everyone, for Millennials (the generation that now makes up most of the airline travel customer base), the convenience and reliability are well worth it.

Delta, United, and American Airlines are solid contenders with their enhanced premium offerings and strategic market positioning. United’s projected growth to $125 per share, Delta’s premium revenue forecasts, and America’s rising premium sales suggest sustained growth potential. For investors looking to diversify their portfolios before year-end, these major carriers offer an attractive combination of strong fundamentals, premium service expansion, and seasonal momentum driven by Travel Tuesday promotions and holiday travel surges. Visit Trade Ideas to learn more about how other holiday events can influence your portfolio and how to take advantage of these stock surges before the year is up! 

References 

Ferré, I. (November 27, 2024). Airline stocks soar as demand for premium travel booms. Yahoo! Finance. https://finance.yahoo.com/news/airline-stocks-soar-as-demand-for-premium-travel-booms-135921918.html

TipRanks. (November 27, 2024)). Popular Airline stocks: Top airline companies Today. tipranks. https://www.tipranks.com/compare-stocks/airline

The ten best airlines stocks you can invest in. (17AD). https://money.usnews.com/investing/stocks/airlines