Thanksgiving Could Be Busiest For Air Travel Since The Recession

• Airline stocks have for the most part outperformed broader indices over the past year on strong demand and fuel savings.
• Airlines for America, an airlines association, said on Thursday that Thanksgiving travel on U.S. airlines will surpass last year.
• The association added that travel during the upcoming holiday will be the busiest the industry has seen since 2008.

Investing in U.S. airliners has for the most part offered investors a return superior to the broader indices. For example, shares of Delta Air Lines, Inc. (NYSE: DAL) gained nearly 20 percent from a year ago, United Continent Holdings Inc (NYSE: UAL) shares have gained nearly 10 percent, and American Airlines Group Inc (NASDAQ: AAL) gained more than 5 percent. During the same 52-week period, the SPDR S&P 500 ETF Trust (NYSE: SPY) returned just 2.72 percent.

Airline operators benefited from operational improvements, continued growth in demand, lower oil costs, among other factors. The sector's momentum is expected to continue through Thanksgiving as U.S. carriers are projected to fly 25.3 million passengers worldwide from November 20 through December 1, according to Airlines for America.

Reuters reported that Airlines for America, an airlines association, said its projection for the Thanksgiving period would mark a 3 percent increase in travel from a year ago. The group added that airlines are currently adding capacity to satisfy the spike in demand.

"As competition continues to boost schedules and drive down airfares in 2015, customers are seeing more opportunities to fly during the holiday season," John Heimlich, the group's chief economist noted in a press release.

The group is also expecting the 12-day Thanksgiving travel period to be at the highest level since the Great Recession.

Airlines for America also pointed out that the 10 publicly traded U.S. airliners earned $17.9 as a whole during the first nine months of 2015. The sector reported a 36 percent decline in fuel costs, which more than offset flat operating revenues.