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Despite stalled growth in China, Brazil and Russia, a wave of newly middle-class travelers from the BRICs and beyond will start visiting international destinations in the coming decades — dwarfing the numbers we’ve seen thus far.
Airline analysts are bullish that the recent wave of consolidation and ancillary fees will herald a new era in aviation where carriers are able to cut costs while becoming more resilient in the market.
While airline stocks have a reputation for destroying shareholder value as they grapple with volatile fuel costs and grueling competition, investment pros are warming up to a few names in the sector.
With American Airlines moving closer to exiting bankruptcy with a possible merger with US Airways Group Inc., the industry will be have at least one blockbuster deal to help reinvent itself for Wall Street.
“We think there’s a renaissance going on in the airline industry,” Marshall said. “We’re still in the early stages of it. There will be starts and stops with fuel costs and the economy. But the industry as a whole has become more rational, and we think you could build a better investment case around the airlines today than you could 20 years ago.