CNBC’s Jim Cramer offered shares of two airlines on Monday that he thinks investors should pick for their portfolios.
“There is always a bull market somewhere, and right now it is flying at 30,000 feet. My favorites are the two most profitable ones, these are [Delta Air Lines] and [Alaska Air Group]. Just remember to call the front desk gradually as you move up, because remember that these are airlines. It’s usually a very fast-paced industry,” the Mad Money host said.
Delta shares fell 0.96% on Monday, while Alaska shares fell 0.19%.
Earlier this month, Delta said it expects second-quarter sales revenue to grow double-digit from pre-pandemic three years ago. The company also expects total sales to recover to 97% of 2019 levels.
Following the company’s latest quarterly results, Chief Executive Ed Bastian told Squawk Box that the airline recorded its highest monthly booking volume in March and that the trend continues into April.
“I’m still stunned,” Kramer said of Bastian’s comments.
Alaska set a sales record in March but cut its schedule by 2% through the end of June due to a shortage of pilot samples.
“Although they are not among the largest, they are nonetheless very well organized, with far more leisure travelers than business travelers,” Cramer said.
“The only problem with these stocks is that everyone knows that Alaska Air is one of the strongest players in the industry, so it’s harder for them to deliver unexpected growth. That’s why the stock is actually down a few dollars from where it traded earlier in the quarter,” he added.
Kramer said that despite the bull market for airlines, there are a few stocks investors should avoid.
“I would stay away from the companies involved in the bidding war for Spirit Airlines — JetBlue, Frontier and Spirit itself,” he said.
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Denial of responsibility