U.S. Global Investors' Frank Holmes sees more upside for airline stocks - ICYMI

Finance Investments And Investor Services Written by: Emily Jarvie 09:00 Sat 22 Aug 2026 --> Proactive has a commercial relationship with U.S. Global Investors. This article was produced independently under Proactive's Editorial Standards Policy . Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The Canberra Times, and... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. U.S. Global Investors ( NASDAQ:GROW ) View Price & Profile U.S. Global Investors’ Frank Holmes sees more upside for airline stocks - ICYMI Published: 09:00 22 Aug 2026 EDT U.S. Global Investors (NASDAQ:GROW) earlier this week highlighted resilient travel demand, the return of corporate passengers and airline pricing power as factors supporting the outlook for the travel industry and airline stocks. CEO & CIO Frank Holmes told Proactive that Air Canada (TSX:AC.B) was anticipating a particularly strong fall travel period as corporate travel recovered and demand became less seasonal. “I think Air Canada said that the fall is shaping up to be one of its strongest travel periods, helped by this resurgence in corporate travel and less seasonality in demand,” Holmes said. He noted that competition for business-class passengers was intensifying, with American Airlines looking to compete more strongly for corporate travellers. Holmes said United Airlines and Delta had been particularly successful in capturing corporate travel, a segment he described as an important source of high-margin business. Leisure demand was also providing support. Holmes said roughly one third of global leisure travel spending was occurring in Southern Europe, benefiting luxury goods spending and restaurants. He noted that Americans and Canadians continued to travel to Europe despite the euro being more expensive relative to the US dollar. The US hotel market was another indicator of travel strength, with Holmes citing CoStar data showing another positive year-over-year comparison for the industry. For investors, airline valuations and pricing power emerged as key themes. Holmes described Delta as a classic GARP, or “growth at a reasonable price,” stock. He also said airlines had become adept at cutting capacity on weaker routes, helping maintain fares and pricing power. “It is a serious trend that's very positive for the industry and gives them pricing power,” Holmes said. Potential catalysts identified during the discussion included continued corporate travel growth, sustained leisure demand and airlines' capacity discipline. Holmes also highlighted oil prices as an important influence on airline share prices, saying airline stocks had shown trepidation when oil moved above its 50-day level and strengthened as oil fell below it. Holmes argued that airline valuation multiples remained low compared with the S&P 500 and said there could be “much more surprise in the upside” if the favourable travel trends continued. Continue reading