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Travel, maybe a place that will now fly again? 😊

Delta $DAL-1.2% CEO Ed Bastian says we're probably starting our "revenge travel" in the US now, and he's shocked by how much.

I dare say we are past pandemic times and the world is already open everywhere again. The last few years have been a period of travel chaos and now, according to statistics, people are hitting the road again. Even "sticky" inflation and higher airfares are not enough to spoil the opportunity. And Delta Air Lines CEO Ed Bastian just told Fortune that demand remains at least "really, really strong."

This week, in an interview with editor Michal Lev-Ram on the Leadership Next podcast, he said that, right now, his team has quantified Americans' desire for "revenge travel," and it's a huge number. "People talk about revenge travel or detained travel - that's outside of anything that people might classify as truly detained," Bastian said. "We've gone through several years where people couldn't go back and travel, experience and see their loved ones, see their business colleagues, adventure - those are all reasons why we travel. And people have had a lot of time."

I personally spotted this company about 2 weeks ago and have been following it. It has risen from a price of around $31 to today's $39. Some analysts' estimates see it at an average price of up to around $52.

DAL
$51.58 -$0.65 -1.24%

It is true that inflation is high all over the world. This is a company in the US, where interest rates have been steadily rising so far and there is a lot of talk about an expected recession. On the other hand, as the CEO's opinion here states, despite the bad economic situation and higher ticket prices, people just want to get out of their homes. That is why I am starting to think about this sector. 😊

How do you view airlines? Do you have any in your portfolio and to add to that I want to ask your opinion on Ryanair $RYAAY+1.3%. A low cost airline based in Ireland, which I'm sure all of us have flown and fly here in Europe most often. It offers up to 2,000 flights a day from 85 locations to 216 destinations.

RYAAY
$123.39 $1.62 +1.33%

I bought $DAL-1.2% $AAL+0.5% in covid and they are some of my most profitable titles... so I like airlines! :-D

Great. Congratulations. You've caught well in the covid of buying this. As you can see $DAL-1.2%, I don't have a purchase yet but I am considering it, unfortunately I missed out on the $30 purchase so now I'm thinking, isn't it too late? ...🤔

For me, it certainly isn't... the stock is down from circa $50 just based on covide, there is no other fundamental behind it... and once the world calms down again, I believe it will go back to at least pre-covid levels. After all, it is the 2nd largest US airline, with lots of flight know-how, its own fleet and tradition... so I'm not really worried about it :)

I've been watching in covid $UAL-1.2%. He then sold Buffet shortly thereafter and said it wasn't a good investment. Right now the airline is well below the covide levels and not really looking up. It's possible that as passengers increase, the stock value will go up, but it will probably take a while. For me at the moment this industry is uninvestable.

I agree and thanks for the opinion. They're not cool yet after the covid and those ticket prices are pretty high now compared to last year, that's why I've denied myself a holiday this summer too and prefer to invest it, last year I flew for almost free. I'd like to find something to invest in, at the moment what I'm watching is the one $DAL-1.2% mentioned is doing well, but I should have bought around that $30, now I've probably missed it.

Sure, maybe it's not $30, but what isn't can be. He's still got room to fill that jump in covid.

I don't trust airlines very much. I think it's a cyclical sector and in an economic downturn one of the first stocks to feel the downturn. Plus, fuel costs may rise. If inflation continues, this could further constrain airlines.

Yes, I basically agree, there's a lot of that cyclicality. That's why I just like the idea of taking a moment to capitalize on the interest, which is mainly to travel more over the summer. And as you say, inflation, fuel and even ticket prices, I can see the difference from experience, last year, the second half I flew it was a lot cheaper. But the interest is there so far this year according to the stats, so we'll see. 😊

I understand the concerns, but if growth continues, airlines can benefit from the recovery. Travel is a priority for people and they will want to fly more after the restrictions.

Agreed, that's my point, because even though prices are more expensive, people just won't forgive themselves for traveling, especially now after all the years of restrictions.