Airlines stocks beat market by most in a decade as travel booms

Airlines stocks beat market by most in a decade as travel booms

A record year for travel in the US is pushing airline stocks to a soaring annual outperformance, and the prospect of sustained earnings power points to a bullish outlook for 2025.

The S&P Supercomposite Airlines Index has jumped 60% in 2024, compared with a 27% gain for the S&P 500 Index. It’s the best year for the industry gauge since 2014, which is also the last time it beat the broader market by this amount. United Airlines Holdings Inc., the airline gauge’s top performer, is up 144% this year, making it the fourth-biggest gainer in the S&P 500.