From Nasdaq:

Delta Air Lines reported better-than-expected earnings, kicking off the Q4 2023 earnings season. United Airlines also saw a 9.9% increase in revenue, and strong demand is expected to boost the results of other carriers like Allegiant, Spirit, and Frontier Group. Factors driving the positive results include strong holiday air travel and declining fuel costs.

Air travel demand is expected to bounce back, driving impressive results in Q4 for airline companies. Thanksgiving and Christmas holidays contributed to strong passenger volumes, and international demand has also rebounded. Declining fuel expenses are an additional tailwind for the industry, with oil prices declining 10% in the October-December period.

Investors looking to pick the right airline stocks for Q4 earnings can use a combination of positive Earnings ESP and Zacks Rank to identify potential outperformers. Allegiant, Spirit, and Frontier Group are all slated to report Q4 earnings in the coming weeks, with positive growth and forecasted revenue boosts.

Allegiant Travel, Spirit Airlines, and Frontier Group Holdings have all shown strong potential for positive earnings surprises in Q4, with upbeat air travel demand providing a boost. Each company has a history of beating the Zacks Consensus Estimate and has reported bullish expectations for Q4 revenue. This makes them good options for investors looking at potential Q4 outperformers.



Read more: 3 Airline Stocks Likely to Surpass Q4 Earnings Estimates