3 Airlines to Benefit From the Shift to Long-Haul Travel 

US low-cost carrier Spirit Airlines reported earnings last week, missing consensus estimates and sending its shares over 7% lower.

However, within its release, the company commented on current demand trends, stating that demand for the peak summer travel period in the markets they serve — North, Central, South America, and the Caribbean — has been softer than expected.

Interestingly, SAVE's president and CEO, Ted Christie, noted demand is shifting towards long-haul international travel instead. So, here are three airline stocks that could benefit from that shift: 

American Airlines – NASDAQ: AAL

AAL is the biggest airline in the world and serves various routes across the globe. It is also aiming to expand to more routes on the African continent. 

The company's recent earnings release revealed a record quarterly revenue of $14.1 billion, while it also increased its adjusted earnings per guidance for the full year. However, its share price fell after the release as its guidance fell short of competitors'. Even so, given that SAVE said there has been a shift to long-haul international travel, AAL should be well-positioned. 

IAG – LON: IAG

London-listed Airline group IAG is another that should gain from the increase in US demand, with routes to the UK under its British Airways banner and to Spain under its Iberia airline. British Airways is also one of the primary airlines operating the lucrative New York to London route. 

IAG shares jumped following its first-half results in late July. The company reported a “record first-half profit driven by continuing strong performance,” with the company also noting that demand remained strong. Around 80% of the company's third quarter's passenger revenue has already been booked, while it expects full-year 2023 capacity to be around 97% of pre-COVID-19 levels.

Delta Air Lines – NYSE: DAL

DAL is another of the world's largest airlines with a significant fleet size. The carrier serves routes across Noth, Central, and South America, as well as Europe, Africa, Asia, and Oceania, making it a prime candidate to benefit from the shift in US traveler preferences. 

Delta shares recently rallied after it posted record quarterly profits, profiting from the booming travel demand. It also hiked its full-year earnings guidance to between $6 and $7 per share compared to the previous forecast of $5 to $6 per share.