We study the q-state active Potts model (APM) on a two-dimensional lattice in which self-propelled particles have q internal states corresponding to the q directions of motion. A local alignment rule inspired by the ferromagnetic q-state Potts model and self-propulsion via biased diffusion according to the internal particle states elicits collective motion at high densities and low noise. We formulate a coarse-grained hydrodynamic theory with which we compute the phase diagrams of the APM for q> = 4 and q = 6 and analyze the flocking dynamics in the coexistence region, where the high-density (polar liquid) phase forms a fluctuating stripe of coherently moving particles on the background of the low-density (gas) phase. A reorientation transition of the phase-separated profiles from transversal band motion to longitudinal lane formation is found, which is absent in the Vicsek model and the active Ising model. The origin of this reorientation transition is revealed by a stability analysis: for large velocities the transverse diffusivity approaches zero and stabilizes lanes. Computer simulations corroborate the analytical predictions of the flocking and reorientation transitions and validate the phase diagrams of the APM.