Airline Stock Outlook: What To Watch In 2023, Southwest Is My Top Pick

Summary

  • 2023 will likely be a key year for airlines, testing which ones are most on track to return to the post-COVID "normal".
  • A key variable I'm watching is when each different airline resumes dividend payments, which I'm watching across 10 airlines in America, Europe, and Asia.
  • Of these 10, Singapore Airlines, the world's largest airline by market cap, was first to resume its dividend, but I find it way too expensive at 20x estimated 2025 EBIT.
  • Southwest Airlines is a much more localized carrier that is re-starting its dividend in 2023, and seems much better valued at 5x 2024 estimated EBIT.
  • Looking for more investing ideas like this one? Get them exclusively at The Expat Portfolio. Learn More »

airplane departure

IlkerErgun/iStock via Getty Images

2022 was a year when airline travel started to feel like it was returning to normal, but 2023 is the year where I'm watching airline stocks to see if any of them will return to being normal

Most of my portfolio is in non-US stocks because many foreign markets tend to be faster growing, less competitive, and often more cheaply valued. Join my journey around the world as I share my experience as a long-term expat in search of the best international stock opportunities with a free trial to The Expat Portfolio.

This article was written by

5.9K Followers

Tariq Dennison, runs an RIA focused on international clients and portfolios, applying his on-the-ground experience as an expat investing in diverse foreign markets. Tariq is the author of the books "Invest Outside the Box" and "10 Ways To Invest." He lives in Switzerland, and has worked in Finland, Canada, the UK, Hong Kong, and Singapore.

Tariq is the leader of the investing group

The Expat Portfolio

where he helps members invest internationally with greater clarity and confidence. Features of the service include: Frequent, short, and focused analysis, access to his watchlist and dashboard, guides to specific foreign markets, and direct access to Tariq and his community in chat for discussion and questions.

Learn more

.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About LUV Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on LUV

Related Stocks

SymbolLast Price% Chg
LUV
--