Invest in Airlines – How To Invest In Airlines in 2021

Fact Checked by Gary McFarlane

In a generation driven by the pure desire to build transgenerational wealth that would last, investment has turned out to be the best call anyone can make. The question of how to invest is not as important as what to invest in. There are a lot of factors to consider in choosing the most profitable investment, and this is where it becomes difficult.

We understand just how difficult it could be to decide on investing in airlines without proper guidance. Throughout this guide, we will explain how to invest in airlines, as well as step-by-step guidance on how to get started.

#1 Broker to Invest in Airlines – eToro

1
$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

How to Invest in Airlines – Step by Step Guide 2021

If you’re having trouble figuring out how to invest in airlines, we’ve put together this quick guide to get you started in under 5 minutes.

  • Step 1: Create an account with eToro – The first step is to create an account with a broker. eToro is a platform that we endorse. Simply go to eToro.com, click the “Join Now” button, and fill out the relevant information.
  • Step 2: Verify your Identity – You’ll need to verify your identity because eToro is a regulated site. You’ll only need a photo ID (passport or driver’s license) and proof of address (utility bill, bank statement).
  • Step 3: Fund your account – After you’ve verified your account, you’ll need to fund it. Simply select “Deposit Funds,” enter the amount to be invested, and click “Deposit.”
  • Step 4: Invest in airlines – That’s all there is to it! You’re ready to invest; simply type “airline” into the search field, click “Trade,” enter the amount you want to invest, and click “Buy.”

Where to Invest in Airlines – Choose a Broker

We have established that investing in Airlines might not be easily accessible, but with access to certain platforms, it can become quite easy. There are several options to consider, but very few are credible. We have taken the time to save you undue stress by picking out three exciting options which you can consider when you want to invest in airlines.

1. eToro- Best Platform to Invest in Airlines

There are little to no sentiments involved in this evaluation. eToro truly stands out when compared to the above-highlighted brokers. You can say that it is the best out there. Earlier, we stated that it was established in 2007, a year later than AvaTrade, which was created in 2006. It has achieved quite the plaudits in over 14 years of its existence, with close to 24 million traders actively using the platform. Maybe this is what they mean when they say that “Old is gold.” eToro investments look surreal compared to the outlook offered by other investment platforms that do not make this list. Like Capital.com, it is another investment platform that forms a cosy place where young investors can nestle while learning the ropes of investment.

Security and Privacy measures

eToro is also certified by the CySEC and the Exchange Financial Conduct Authority (FCA) and has proven that it has the interest of the investors at heart. It was developed to provide tough security for all traders who are duly registered on the platforms. The long-running issue of cybersecurity concerns plaguing most internet investment platforms has nothing on the eToro platform. It gives priority to data protection across its servers to protect against the influx of attacks from hackers. The platform is SSL encrypted, which poses no risks to the account of the users. Any risk to the account of any user might come from them revealing their security details to a party outside eToro. Even this slightest potential risk factor can be surmounted by the newly instituted 2FA authentication system, which enables users to enter a unique password to verify their access to the account. This further narrows down the possible threats to the integrity of the eToro security measures to protect the profile and portfolio of each registered user.

Fees and Features

The platform doesn’t just offer a safe and credible system for a credible trading adventure. Aside from the opportunity to learn from training modules available on the platform, users can also make use of the Copy Trading feature on the platform. What is Copy Trading? It is a function that allows users to deploy the trading pattern of another eToro user. Let us say you want to trade on eToro, but you have access to information about an experienced trader, and you wish to adopt the same trading pattern; you can use the Copy trading effect for this cause. Hence, as a beginner, you do not have to learn about the intricacies of the eToro trading platform before you can start trading. You can do so much more with zero knowledge about trading. Your trading options on eToro cover cryptocurrencies, forex, stock, among others that can be managed from a remote location.

While it charges a small withdrawal and inactivity fee, it is commission-free and also does not require a deposit fee.

eToro Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee £0
Withdrawal Fee £5
Inactivity Fee £10 per month

 

Pros

  • Validated by regulatory bodies such as the FCA
  • Free of commission
  • Beginners can trade using copy trading
  • Ease of access
  • High security

Cons

  • Withdrawal and inactivity fees may be charged
  • Could benefit from MetaTrader support

67% of retail investor accounts lose money when trading CFDs with this provider.

2. AvaTrade – Great Way to Invest in Airlines

With over 15 years of experience helping investors meet their financial expectations and fulfil their dreams, AvaTrade sure stands out among the crop of investment brokers. It has a proven track record of safe and secure transactions across multiple types of trades with little to no fear of downtimes. Users can trade seamlessly using the platform’s user-friendly interface. You will have access to popular markets of each market of interest. This means that if you are interested in investing in something other than airlines or cryptocurrencies, you will find it on the platform.

Security and Privacy

The platform maintains a tight-lipped security system developed by its talented developers to protect against danger from hacks. The one bane of platforms such as this online is the existence of little to no valid cyber security measures. With the 256-bit SSL encryption system deployed by AvaTrade, investors can rest easy that their holdings on the platform are safe and sound. Each investor is tasked with the security of their account and investment portfolio; as long as you do not reveal the security details of your account, there is little chance that you can get ripped off by hackers and other digital attackers. This particular attribute has kept long-term users of AvaTrade hooked to the system, and it has become their trusted broker for years on end.

Fees and Features

A great service such as this sure does not come cheap, but AvaTrade does you one better in terms of affordability. According to a survey, the reason why many users have fled most of the existing brokers is because of their exorbitant transaction fees. Aside from the transaction fees to be expended in facilitating trades, a certain amount of money is deducted from every deposit made on the platform.

AvaTrade is a major upgrade on these platforms in that its trading experience works with the customer in mind. They have a working commission-free system which means that users will always get full value for their investments without any unnecessary deductions made. They have a committed 24/7 customer service line that provides support for users both online (via email) or offline (via telephone lines). It does not matter what time of the day you have a case that requires attention on the platform; you can trust that you will meet an AvaTrade agent at the end of the line to come to your rescue.

Avatrade Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $50 after three months and $100 after 12 months

 

Pros

  • Highly secure and safe
  • Zero commission fee
  • Active customer support
  • Halal account

Cons

  • Geo-restrictions (very few countries are enabled to use it)
  • High inactivity fee

Your Capital is at Risk.

3. Capital.com – Secure Way to Invest in Airlines

Capital.com is not some back-alley investment operator. If you conduct due research, you will undoubtedly find an enviable list of accolades from the registered broker. Among the long list of regulatory bodies that have acknowledged its credibility, we have the Cyprus Securities and Exchange Commission (CySEC), the FCA, and the leading securities and investment commission in Australia, in addition to the National Bank of the Republic of Belarus (NBRB).

It goes beyond just a platform where users can trade and invest. It functions as an educational system here, new and intending traders can learn the rudiments of any form of asset trading. This is a good idea because the world of investment is quite steep, and without proper guidance, new investors are doomed to lose whatever fund they bring into it. They are heavily invested in raising the best traders who will be able to trade confidently and earn a profit off as many investments as they make.

Security and Privacy

As a highly regulated broker, numerous protective measures and assessment protocols have enabled Capital.com to earn the trust of the regulatory bodies highlighted above. They ensure the security of every consumer data that has been provided by users on the platform. Without this, it could lose its license to operate as a fully secured investment broker. It is rigged to withstand severe attempts of data breaches, and it has been rated according to PCI data security standards. As a perk, users residing within the United Kingdom have an automatic FDIC insurance of about £85,000 on their investments.

The insurance fund is set to protect users if Capital.com’s security protocols are breached and some holdings are lost in the process. The extra security it possesses is in its compliance with regulatory bodies that will hold the platform liable for any detrimental impact on the prospects of investors worldwide.

Fees and Features

The educational features of the platform remain its most redeeming feature. Users interested in specific aspects of training can easily find training content under hear niche to learn from before attempting to trade on the platform. You have everything you need to learn about the basics of trading down to the advanced levels across different open markets.

Capital.com comes highly recommended for those getting into trading for the very first time. Beginners can make full use of its easy-to-access interface and learning modules to get the best out of their trading experience. It also has a working TradingView feature that enables users to track the progress of their various assets on the platform. While it charges no commission, deposit, or withdrawal fee, the platform bests AvaTrade in terms of no Inactivity fee being imposed on its users.

Capital.com Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0

 

Pros

  • Efficient training tools
  • Access to use charts for monitoring assets
  • Insurance for UK-based traders

Cons

  • Smaller account currencies not available
  • Track record far shorter than some competitors

 76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

Invest in Airlines – Broker Price Comparison

Still unsure about which broker is right for you? Don’t worry, we’ve included an informative table to assist you in making your decision.

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly
Capital.com 0% $0 $0 $0
AvaTrade 0% $0 $0 $50 after three months and $100 after 12 months

 

Advantages of Investing in Airlines

Airlines are backed by wealthy groups of individuals or a conglomerate of firms coming together to create one big firm financing some of the biggest airways in any country. For a long time, investment in airlines has never truly been on the forefront of the regular investor’s mind, and the fact that a prominent investor like Warren Buffet took an interest in it makes us feel like, “Well, why not!”. The occasional fear that plagues the average investor in airline stock is the fear of issues with fuel prices, weather downtimes, recession, etc.

There has been a degree of stability that has given room for airlines to earn a profit, with most airlines publishing balanced annual accounts amidst serious renovations done to improve their ageing fleets. With this, you cannot help but wonder just how much profit these airlines make in a calendar year. Already, a standard airline’s fleet consists of newer aircraft, which are more fuel-efficient and coupled with transitions in the use of electric systems in mobility systems. Added to this is the increased passenger capacities, which further buttresses productivity making each flight from one location to another ultimately more profitable. For all these obvious reasons, investment in Airline stock is an attractive idea that you should consider for both short- and long-term gains.

Cons of Investing in Airlines

The major concern for those who want to invest in Airlines is the inherent market volatility. But this doesn’t stop traders from wanting to make a quick buck from the markets anyway. As much as volatility means a 50% chance to lose money, optimistic investors always see it as a 50% chance to make a profit as well.  Whether you trade-in on Airline stock in the short term and the long term, you can benefit from the trade in several ways during an active trading day. Hence, every investor can expect the Airline stock market to be a two-edged sword. There is a thin line between profit-making and cutting your loss.

The Best Airlines to Invest in

Below are the best airlines we think that you can invest in for maximum profits:

American Airlines: There are four major airline groups in the United States as Delta Air Lines, American Airlines Group, United Airlines Holdings, and Southwest Airlines bought AirTran. American Airlines tacks up the highest volume of trades on the intraday sessions, with a whopping 146 million shares being traded per day. Its share price grew incredibly from about $10.50 to around $20.31 between May 29 – June 8. The year-to-date gains stand at about -49.78%.

Seeing that this brand has come under new management, we are looking forward to some really impressive numbers – better than we saw after its merger with US Airways in 2015.

United Airlines:  The share price of United Airlines stands at about $35.7 with a year-to-date price change of about -59.38%. The prime cause of the average negative gain is the Covid-19 restrictions which put a dent in what would have been a good year for the aviation industry in general. However, seeing that United Airlines has huge operations serving Silicon Valley and the entire U.S. Energy Sector, including a massive network throughout the Asian continent, this airline company is out to bag some massive gains in the coming months.

The flow of the tech and energy sectors will definitely boost their earnings. This is something you do not want to miss out on.

South West Airlines: The share price of Southwest airlines has also suffered a stumble, but it is doing pretty well, with its share price standing at about $34.60 with a year-to-date gain of about -36.35%. No doubt the COVID phase hit this airline company pretty bad, but it has a pretty good track record and there are no indications that it is going to do badly in the coming quarter.

Coming from a maverick startup to one of the biggest airline companies in the industry, this airline is still the only major carrier to have escaped bankruptcy court since its inception. It also has a history of remaining profitable and racking in some huge profits even when rival companies are struggling. Now is the best time to but South West Airlines stock people!

Cargojet Inc: Cargojet Airlines has enjoyed a bit of fortune, being the only airline to have maintained a positive year-to-date gain of about 55.84%, with its share valued at about $163.38. Based in Canada, this company remains the leading provider of overnight cargo in Canada, providing night air cargo services to over 14 cities in Canada every business night.

With a market cap of CA$3.3 billion, we’re expecting this company to gain some major recognition in the coming years, which translates into enormous gains for this company. So, if you’re looking to triple your investment in a few years, this airline is definitely the one you should invest in.

All of the above-listed Airline stocks are on the verge of major recovery from the reeling effects of the Covid-19 restrictions that crippled the aviation economy concerning international travels as well as some domestic movements which were restricted. Logically, we think that if that weren’t the case, it could be much better. The ongoing recovery could be a good window to cash in on. Nonetheless, it remains a viable investment option that could generate huge profits in the nearest future.

How to Invest in Airline stock

There are two distinct ways in which you can invest in Airlines. You can either buy an airline’s stock directly or buy an ETF that owns the stock. We have seen many investors try to go it all alone and try random stuff. This can end up becoming a costly decision in terms of expenses and the risks attached to it. Ask around, and you will hear from experienced DIY investors clamouring about just how expensive it is to trade stocks. Whether you intend to buy the stocks directly or ETFs, you can use eToro to buy any airline stock of your choice. If you are not confident about doing it yourself, you can make use of the copy trading feature of eToro to maximize the airline stock/ETF market.

How to invest in Airlines with eToro

The advent of the internet has led to a pretty seamless investment system, with investment brokers now gaining traction online. Investors can easily access a top broker without his or her physical presence in an office or banking hall. Notably, several online brokers offer investors a chance to invest and improve their financial status in the short- and long term. One of the best brokers that comes highly recommended from us is eToro. It is a pretty old firm that has dug its teeth deep in the financial markets since 2007 because of its affirmed credibility. You can do much more than just invest in airlines on this platform.

To get started on eToro, there are a few things you need to do first:

Step 1: Open an account with eToro

If you want to invest in any airline, the first step is to open an account with a reputable broker. We recommend eToro for this because it provides a fantastic combination of security, extensive trading features, and an easy-to-understand pricing structure. Simply type “eToro.com” into your browser, click “Join Now,” and fill out the required information. Every little detail you provide counts unless stated otherwise. It will help the platform best serve you with the best investment opportunities available.

Step 2: Verify your account

Because eToro is a regulated platform, you’ll need to verify your account before you can start trading. This is because they follow strict data protection and money laundering rules. Verifying your account is simple; all you need is a photo ID (passport, driver’s license) and proof of address (bank statement, utility bill). It is a part of their strategies to ensure a safe and secure platform where your investments are safe as well as that of other users, and it is important you undergo this process.

Step 3: Fund your account

Once your account has been successfully activated, you still cannot invest via your dashboard unless you make funds available in your eToro account. eToro has made this incredibly easy for you. To add money to your account, simply select “Deposit Funds,” input the amount you want to invest, and click “Deposit.” eToro accepts a variety of payment methods, including credit/debit cards, e-wallets (PayPal, Skrill, and other similar services), and bank transfers.

Step 4: Invest in Airlines

Great! Now you’re all set to invest in any airline of your choice. The eToro interface makes it pretty easy to find your preferred investment options. The search feature on the dashboard can be used to search different categories of investment such as cryptocurrencies, mutual funds, stocks, bonds, to say the least. Simply type in “Airlines” and select your choice from the search results, choose “Trade,” enter your desired investment amount, and hit “purchase.” That’s it, you’ve become an airline investor!

You’re ready to invest in Rivian once you’ve funded your account! Simply type “Rivian” into the eToro search field, choose “Trade,” enter your desired investment amount, and hit “purchase.” That’s it, you’ve become a Rivian investor!

Conclusion

We hope that you have learned enough about why you should invest in Airlines and the best ones you can invest in right now. You can take advantage of any of the above-listed e-brokerages to invest in Airline stocks or ETFs. If you are still skeptical about investing in Airlines, or perhaps there is still a thing or two that you still want to figure out, be sure to carry out your research before choosing. Our top choice is eToro, having evaluated the overall properties such as security, ease of use, accessibility, useful features, and the quality of the service on offer. You can do your research about eToro if you are looking to use it for any form of investment of your choice.

Best Broker to Invest in Airlines – eToro

1
$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

FAQs

Is it a good idea to invest in Airline stocks?

When is the best time to invest in Airline stocks?

Where can I invest in Airline stock?

Do airline ETFs exist?

About Blaise Luis PRO INVESTOR

Blaise Luis is a highly-skilled writer and content creator who has written for several high profile websites and YouTube Channels including Alex Costa. He is a skilled researcher who is great at simplifying complex concepts and making them reader-friendly with two degrees in English and several other professional certificates from top sites like Udemy.