These are aircraft items that are ready for flight

Record passenger numbers at Heathrow suggest a resurgence in wanderlust, with thousands taking to the skies over the Christmas holiday.

The results provide more evidence that we continue to value vacations over other expenses.

For many, travel is not just relaxing, but important. Is this proof that there is still a post-pandemic enthusiasm for travel, should you consider flying on the plane trees?

Yes, but it’s important to sort out the companies that are surviving and those that are in trouble, which shows why this sector is so difficult to invest in, says Richard Hunter of Interactive Brokers. Investor. But Jack Barrat, finance director at investment manager Man Group, says it is a ‘rare’ opportunity to be available.

The airline industry can often be frustrating, with flight delays and poor customer service.

But the things that really annoy you as a customer, such as additional fees for banks, become a source of profit for airlines, increasing their key metric, the RASK (revenues per kilometer seats available).

Some in the industry are looking for new ways to turn their aircraft into what they call ‘winged heroes’.

Earlier this year WizzAir launched a £534 You Can Fly Netflix-like subscription scheme. 100,000 members enjoy unlimited flights for £8.90 per person – but all luggage, except for a small passenger, is charged.

Although we can expect more innovation, investors should know that all airlines are vulnerable to serious problems from external factors outside their control.

In 2010, they suffered after the eruption of the Icelandic volcano Eyjafjallajokull, which canceled thousands of flights. The epidemic was devastating to the industry.

So which shares are ready for takeoff, and which ones are left behind?

IAG

IAG, or International Airlines Group, is the £14.2billion group that owns British Airways, Aer Lingus, Iberia and Vueling. In June, when the share price stood at 167p, this list suggested that many analysts thought the stock was undervalued. This is a fair assessment as the price has risen to 293.2p, although it is down 50 per cent in five years, showing how much damage the pandemic has wreaked.

However, the third quarter results indicated that IAG is continuing to leave this dark period.

Operating profit rose by 15 per cent to £1.7bn, driven by better demand for seats on sea routes, a share buyback programme, a dividend return and other debt reduction.

Despite this year’s uptick, some analysts say the shares are still on the upswing. The average price is 342p. One analyst believes the sky is the limit, however, and sets a target of 599p.

EASYJET

Shares in the £4.4 billion airline have risen 16 per cent to 586.6p since January, thanks to a 34 per cent rise in pre-tax profits to £610m – and the outlook for 2025 is positive.

EasyJet has been helped by a successful foray into higher-end budget holidays, a project whose boss Johan Lundgren stepped down last month. His successor, Kenton Jarvis, plans to attract ’25 percent more customers’ this holiday season, appealing to value-conscious families.

Most analysts believe the only way for easyJet shares to be up here, rating the shares as a ‘buy’. JP Morgan analyst Harry Gower earlier this month set a price target of 750p. Jarrod Castle of UBS has chosen 800p.

WIZZAIR

Despite the popularity of its You Can Fly policy, shares have fallen 33 percent since January — and 63 percent since the start of the pandemic.

This is partly due to a series of problems at the London-listed Hungarian airline. These include problems with its Pratt & Whitney turbofan (GTF) engines that temporarily grounded nearly 40 aircraft, resulting in a 20 percent drop in half-year profits.

Owner and founder Jozsef Varadi said the motion issue may not be fully resolved until 2027. But analysts believe the person holding the shares should remain.

RYANAIR

Shares in Dublin-listed Ryanair have bounced back in recent months, amid speculation the low-cost carrier is shedding some of its losses. Last month, Michael O’Leary, the embattled and controversial boss of Ryanair, said that during the summer season, the airline was overbooked, overbooked and overpriced. It also said it is targeting passenger growth for 2025 in response to delayed deliveries of its Boeing 737 Max planes.

But Ryanair has settled its dispute with online travel agents such as Booking.com that refused to sell its tickets after the war.

This week Alexander Irving of Bernstein brokers advised buyers to buy Ryanair, setting a price of 22.50 €. JP Morgan’s Alexia Dogani is also a fan and has set a price of €25.

Since O’Leary has a 3.9 percent stake in the company, he expects these predictions to come true.

JET 2

The woes of Ryanair and Wizz Air are favored by AIM-listed Jet 2. Last month, the Leeds-based airline reported record revenue, profit and passenger figures for the half-year.

A company that likes its customers and rewards its customers. Shares have jumped by 30 per cent this year to 1620p. You might not think it’s possible to make progress, but analysts rate the Jet 2 a ‘buy’, with an average price of 1,996p. Investors hope that the increase will be good at this level.