3 Best Airline Stocks to Buy Now

Profits are soaring as carriers raise fares and fees, but heed the industry’s history of enormous losses.

There’s an old Wall Street joke about how to end up with $1 million worth of airline stocks: Start with $10 million. But over the past two years, the joke has been on investors who have stayed away from this perennially troubled industry. So far this year alone, the Dow Jones U.S. Airline index has climbed 34%. The stock of American Airlines Group (AAL) has soared 54%, Southwest Airlines (LUV) has gained 51%, and Spirit Airlines (SAVE) has risen 44%.

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Tom Petruno
Contributing Writer, Kiplinger's Personal Finance
Petruno, a former financial columnist for the Los Angeles Times, is an independent investor, writer and consultant. He lives in L.A.