Covid-19 cases in the U.S. have formed four well-defined waves.
After each of the first three waves crested, airline stocks had strong breakouts to the upside.
We are in the midst of a fourth major wave (the Delta wave), which appears to have peaked in early September.
We view this as an opportune time to buy airline stocks, as they are likely due for another post-wave run-up.
The case to buy now is bolstered as private jet and international airline data have started to signal that U.S. air travel demand could recover pre-Covid-19 highs much faster than expected.