Airports are an important facet of every major city as they facilitate trade and ravel. And due to how integral they are to the cities and countries in which they are situated, airport stocks have a solid history of performing well on the stock market. So, what are some of the best to invest in now? Let’s find out.
Best Airport Stocks
Grupo Aeroportuario del Centro Norte (NASDAQ: OMAB)
Grupo Aeroportuario del Centro Norte, also known as OMA, is an airport operating company providing its clients with aeronautical and non-aeronautical services.
This includes managing and operating airports, air cargo logistics services, etc.
Founded in 1998, the company operates in 13 international airports around Mexico, including the country’s largest city, Monterrey.
With a market cap estimated at over $3 billion, OMA continues to thrive despite the earlier fallback of the travel industry due to the pandemic.
The company’s revival was evident in its stats, reporting a whopping 37% increase in revenue in 2022.
Over the decade, the company has more than doubled its revenues, displaying consecutive growth highly valued in the industry.
Recording total returns on investments reaching approximately 181.6% over the past decade, OMAB earns the top spot on the list, evident by its low risk and high potential.
While stock prices have risen since the beginning of the year, OMA’s stocks remain a worthy investment, as the company recorded a 34% increase in passenger traffic in February.
This will inadvertently lead to higher profits for the company, which can benefit shareholders. As of March, OMAB is roughly trading at $80.
Shareholders also stand a chance to earn dividends with an annual yield of 4.85% and an annual payout of $3.7 per share.
Grupo Aeroportuario del Pacifico (NYSE: PAC)
Grupo Aeroportuario del Pacifico, also known as GAP or Pacific airport group, is another Mexican airport operator on this list.
The company provides airport services involving operation, management, and development.
GAP currently operates 12 airports in Mexico and two in Jamaica.
The company strongly focuses on the tourism sector, consistently investing in expanding and modernizing its infrastructure to accommodate these needs.
As of February 2023, the company reported a 24% growth in passenger traffic. This is reflected in its stock price, which has consistently risen since November 2022.
With a market cap of around $9 billion and consecutive growth displayed through the years, GAP easily earns its spot on this list.
Revenue is expected to rise to 44% in the coming fiscal period, and as of March 2023, it’s trading roughly at $180.
Grupo Aeroportuario del Sureste (NYSE: ASR)
Grupo Aeroportuario del Sureste, also known as Asur, is a publicly traded company that provides airport services in Mexico, Puerto Rico, and Colombia.
It operates in 16 airports around the globe, which serve both domestic and international flights.
The company boasts nearly 23 million passengers, making it the third-largest airport service in Mexico.
With a market cap exceeding $9 billion and an average quarterly growth of almost 19%, Asur’s consecutive growth has been prominent.
Though the company was hit heavily by the Covid-19 pandemic, it reassured its stakeholders as it showed an increase in revenue, reaching approximately 50% in 2021.
Asur is estimated to bring in over a billion dollars in revenue in the coming fiscal period.
This makes it no surprise that its share value is rising, with its stocks trading at roughly $298 per share as of March 2023.
ASR also offers dividends to its shareholders, paying out $7.65 annually with a dividend yield of 2.54%.
Blade Air Mobility (NASDAQ: BLDE)
Blade Air Mobility is an aerospace technology company based in New York City.
While the company doesn’t solely provide airport services, it still plays a prominent role in the industry.
Founded in 2014, the company provides a plethora of aviation services to its clients, including charter flights and airport transfers.
By 2015, Blade also introduced a subscription-based aviation service tagged “Blade One.”
This seasonal private jet service focuses on short-distance aviation, targeting New York, Miami, and Palm Beach.
The company also launched a technology platform enabling customers to book flights and receive real-time flight updates using a mobile application.
Recently, Blade expanded its personal helicopter service in India, adding new routes to tourist hubs in the country.
Its main focus is providing short-haul personalized charter services to the new international airport in Goa – Manohar International Airport.
With a market cap of $321 million, Blade continues to soar and is estimated to bring in approximately $143 million in the coming fiscal period.
Though Blade Air Mobility offers no dividend, its shares are relatively affordable and currently trade at roughly $4 as of March 2023.
Atlas Air Worldwide Holdings (NASDAQ: AAWW)
Atlas Air Worldwide Holdings is an airport and air servicing company that supplies outsourced aircraft and aviation operating services all around the globe.
It is the parent company of the popular airline Atlas Air. It also offers a range of aviation services through its subsidiary companies: Titan Aircraft Investments and Polar Air Cargo.
Services include aircraft maintenance and repair, airborne engineering, etc.
It is popularly known as one of the leading operators of Amazon’s cargo operations.
With a market cap exceeding $2 billion, Atlas Air Worldwide Holdings is undoubtedly a major player in the aviation industry.
This is reflected in its stock growth, which has increased nearly 24% in the past year.
However, with the buzz of intentions of Atlas Air Worldwide Holdings being acquired by a private equity corporation, the future of its stock market remains uncertain.
The effect of this means there is a probability it would stop being a public company, taking it off the market.
Its stocks currently trade at roughly $100 as of March, and the company does not offer dividends to shareholders at this time.
Corporacion America Airports SA (NYSE: CAAP)
Corporacion America Airports is a leading airport service provider headquartered in Argentina.
Founded in 1998, the company operates in nearly 52 airports globally in regions like Latin America and Europe.
The company caters to a range of airports, including both international and domestic flights. Its services include airport management and maintenance, passenger handling, and more.
Corporacion America Airports holds its ground by investing in other aviation industry sectors, including aircraft maintenance and logistic services.
Its market cap concedes at $1 billion, which is relatively low compared to its peers, making it a minor player in the aviation industry.
However, the company continues to show adequate growth and is estimated to bring in approximately $1 billion in revenue in the coming fiscal year.
Though it does not offer shareholders dividends, its shares remain significantly undervalued and currently trade at roughly $9.
Compared to other airport servicing companies on the list, CAAP stock constitutes a somewhat risky investment.
Note that stock prices have previously gone as low as 85%.
Nevertheless, this could prove beneficial for long-term investors illing to buy the dip.
AerCap Holdings (NYSE: AER)
AerSale Corporation is a global aviation company involved in the trade and leasing of commercial aircrafts worldwide.
Founded in 1995, the company supplies some of the world’s major airlines, such as Emirates and Lufthansa.
However, it earns its spot on this list thanks to its subsidiary company, AeroTurbine.
Using this channel, it provides various airport services, including aircraft maintenance services and engine leasing.
While the company has adequately recovered from the pandemic hit in 2020, its annual revenue displayed almost no significant growth.
This affected the way the company rounded up its fiscal period, attaining approximately -10.7% in its profit margin.
AER’s market cap exceeds $14 billion and roughly trades at $62 as of March 2023. The company does not currently offer dividends to its shareholders.
Are Airport Stocks a Good Investment?
Airport stocks are attractive investment options for a slew of reasons.
The biggest of them all is that airports are generally government-owned and operated, meaning the underlying businesses are relatively stable.
This is because airports tend to receive government subsidies and grants, reducing the risk of financial constraints.
Additionally, airports typically generate consistent revenue from multiple sources of income, like landing and parking fees, concessions, baggage handling, and other services.
In other words, if any one source of an airport’s income declines, the airport will be able to fall back on its other sources to weather the storm.
Moreover, airports are a key driver of economic growth, as they enable the movement of goods and people around the world.
This means that as the global economy expands, the demand for airports increases and can lead to increased profits.
Additionally, the industry is expected to continue growing as air travel becomes more accessible and affordable across the world, creating an opportunity for long-term growth.
All-in-all, airport stocks are an attractive investment due to their relatively stable business model, multiple sources of income, and strong growth potential.
They are also generally less volatile than other industries, making them a good option for conservative investors.
FAQs
Can You Buy Stocks In Airports?
Yes, you can buy publicly traded airport stocks through a regular brokerage account.
Are Airline Stocks Good Investments?
In addition to buying airport stocks, you can also buy airline stocks which are generally good investments due to how stable the airline industry is.
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