The airline industry is one of the most fascinating sectors of the modern economy, and one of its most essential. Its companies can be broadly classified into two categories: no-frills low-cost carriers and the full-service firms with complimentary meals, premium cabin options, and sought-after loyalty programs.

The postwar economic and technological boom saw global air passenger traffic inexorably increase to hit 4.6 billion passengers in 2019. And then came coronavirus. The pandemic slammed the industry particularly hard, more than 9/11 and the 2008 financial crisis put together: airlines around the world made an estimated $118 billion loss in 2020.

But as the chart below shows, the airline industry overall was previously enjoying healthy profitability. In fact, the past decade was the most profitable in its history.

The airline industry was consistently profitable throughout the 2010s (Source: Statista)

While several airlines have gone bankrupt as a result of the pandemic, many have managed to weather the storm – and may arguably come out of it stronger than ever, with government aid in their pockets and less competition around. The S&P 500 Airlines Industry Index, however, has yet to resume its pre-2020 altitude.

So assuming airlines can return to their previous profitability, now might be a great time to get on board with a few of their stocks.