Airline stocks have endured a year of turbulence, reflected by wild swings in share price, industry expectations and earnings. Recent insider trades of airline companies could indicate where the industry will head next.
The Trades: Benzinga Edge compiles information on insider trade filings.
Southwest Airlines Co (NYSE:LUV) experienced a flurry of insider activity in recent days. Director Rakesh Gangwal invested over $100,000,000 in Southwest shares in late September and early October. Executive Chairman Gary C Kelly bought $1,000,000 of Southwest shares in late September.
Delta Air Lines, Inc. (NYSE:DAL) is the largest American airline company. The Atlanta-based giant experienced several insider sales in early 2024. President Glen W Hauenstein sold $4,904,600 in Delta stock in April, over 30% of his total holding. Executive Vice President Peter W Carter sold $2,500,000 of Delta shares that month, over 25% of his position.
Delta has experienced a volatile year. Its share price rose over 30% from January to mid-May, but a subsequent drawdown erased much of its gains. A recovery followed from August to late September.
Several Allegiant Travel Company (NASDAQ:ALGT) executives have sold shares in 2024. Chief Marketing Officer Scott DeAngelo sold over $1,000,000 in Allegiant stock in May. DeAngelo has since resigned from the company. Chief Operating Officer Frank Wilper and Director Gary Ellmer also made sales in the spring and summer.
Why it Matters: Insider trading activity is often viewed as a valuable indicator of a company's future prospects. When top executives or board members buy or sell shares, it can signal their confidence—or lack thereof—in the company's performance. In the case of airline stocks, this insider movement may be especially relevant as the industry navigates a turbulent environment marked by fluctuating demand, rising fuel costs, and post-pandemic recovery.
For investors, tracking these insider trades provides a critical lens into how industry leaders perceive future risks and opportunities, which can guide their own strategies in an increasingly volatile market.
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