Should You Buy Airline Stocks Right Now?

Investors have been getting conflicting signals about the airline industry in recent weeks. On the one hand, encouraging early data about vaccines under development have bolstered hopes that a vaccine to protect against COVID-19 could come to market in record time. On the other hand, the massive quarterly loss reported by Delta Air Lines (NYSE: DAL) this week highlights the depth of airlines' near-term challenges.

With this backdrop, U.S. airline stocks have settled into a trading range well above the lows plumbed in late March but below the highs briefly reached after a monster rally between mid-May and early June. Shares of Delta, American Airlines (NASDAQ: AAL), and United Airlines (NASDAQ: UAL) are all down more than 50% year to date, while low-fare giant Southwest Airlines (NYSE: LUV) has fared somewhat better, falling 34% year to date.