10 Best Airline Stocks For 2015


HONG KONG (MarketWatch) — Hong Kong stocks swung between small gains and losses early Thursday after hitting a seven-month high in the previous session, with the Hang Seng Index (HK:HSI) down less than 0.1%. Most mainland Chinese property developers outperformed the markets, with Guangzhou R&F Properties Co. (HK:2777) (GZUHF) rallying 3.4%, after the company reported a 44% month-on-month jump in sales for June. Shimao Property Holdings Ltd. (HK:0813) (SIOPF) climbed 2.6%, and China Resources Land Ltd. (HK:1109) (CRBJF) rose 1.7%. However, several retailers were weak, as Want Want China Holdings Ltd. (HK:0151) (WWNTF) , the country’s top food and beverage maker, declined 2%. Hong Kong-based cosmetics brand Sa Sa International Holdings (HK:0178) (SAXJF) fell 1.6%, with a decline in Chinese June non-manufacturing data helping weigh on some retailers. Over on the Chinese mainland, the Shanghai Composite Index (CN:SHCOMP) retreated 0.4%, pulling back from its highest close in two weeks.

10 Best Airline Stocks For 2015: ANA Holdings Inc (ALNPF)


ANA HOLDINGS INC., formerly All Nippon Airways Co., Ltd., is a Japan-based airline holding company. Its Air Transportation segment is engaged in the air transportation business, the provision of various services at airports, the provision of reservation services via telephone, the freight express business, and the maintenance of aircrafts in domestic and overseas markets. The Traveling segment plans and sells tour packages under the brand names ANA Hello Tour and ANA Sky Holiday, it also offers services to travelers at arrival areas and sells travel products and air tickets. The Others segment involves in the information communication, trading and merchandise business, building management, logistics and airplane fixture repair business, and hotel operation. On March 4 and March 5, 2013, it fully acquired all shares of one and two consolidated subsidiaries through stock swap, respectively, made them become wholly-owned subsidiaries. Advisors’ Opinion:

  • [By Daniel Inman]

    In Tokyo, ANA Holdings (JP:9202)   (ALNPF)  declined 4.7% after the airline lowered its 2013 fiscal-year net profit forecast by 65% on higher fuel costs and slow service expansion because of delays in Boeing (BA)  787 Dreamliner deliveries.

10 Best Airline Stocks For 2015: Alaska Air Group Inc. (ALK)

Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.


Advisors’ Opinion:

  • [By Quick Pen]

    The 737 aircraft is taking Boeing’s orders to record levels. Earlier in October, the jet maker had bagged orders from Alaska Air Group (ALK) for 10 737-900s. The deal is worth $990 million at list price. Such a continuous massive order flow has made the company to rethink its future production strategy. As per its earlier plan, Boeing had decided to ramp up production from its current 42 per month to 47 per month in 2017. But this is not the end. The plane maker is keen on pushing the production rate further up. Accordingly, the company said that it could boost the 737 production level to 52 a month in 2018. After the production rate is brought up, the company will be able to deliver 620 planes annually.

  • [By Teresa Rivas]

    Earlier this week, they cut their rating on budget carrier Spirit Airlines (SAVE), and upgraded JetBlue (JBLU) to Buy in late August.  Today, they reiterated their Outperform rating and $58 price target on Alaska Air Group (ALK), writing that the company continues to post solid results despite a difficult macro environment—a fact that the market isn’t fully valuing.

  • [By Ben Levisohn]

    Shares of Alaska Air (ALK) are falling today after it was cut by the folks at Raymond James, while Delta Air Lines (DAL) is gaining after getting hit hard earlier this week.


    Associated Press

    Raymond James analysts Savanthi Syth and James Parker explain why they downgraded Alaska Air:

    We are downgrading Alaska Air from Outperform to Market Perform due to the risk to our 2015 EPS estimate from intensifying competitive capacity pressure. While 1Q15 schedules are still very preliminary, it appears competitive seat capacity growth is set to accelerate to 12% y/y from the already elevated ~6% y/y level over the previous 6 quarters. We continue to believe that Alaska will use its dominant market position and strong balance sheet to successfully compete with Delta and support its stock. However, while the competitive issues in Seattle are not new, we believe significant upside to the stock in the near term is unlikely given risks to 2015 earnings estimates.


    Speaking of Delta, it plunged 5.2% on Wednesday after the airline said revenues would be lower than it thought. Wolfe Research’s Hunter Keay and Jared Shojaian look into Delta’s miss:

    August was the third straight month of underwhelming PRASM results from Delta Air Lines. Perhaps not coincidentally Alaska Air and JetBlue (JBLU) have been underperforming industry PRASM lately as well, two airlines defending themselves against Delta Air Lines. To be sure, Delta Air Lines’ PRASM is still growing faster than its CASM, which means margins are expanding y/y, but the rate of margin change is likely to be “less good” relative to United Continental (UAL) and American Airlines (AAL) due to Delta Air Lines’ capacity choices. We like Delta Air Lines, just not as much as most other Outperform-rated airlines.


    Shares of Alaska Air have dropped 1.1% to $47.13 at 1:53 p.m., while Delta Air Lines has gained 0.5% to $39.47, JetBlue has risen 0.4% to $12.57, United Continent

10 Best Airline Stocks For 2015: US Airways Group Inc (LCC)

US Airways Group, Inc. (US Airways Group) is a holding company whose primary business activity is the operation of a network air carrier through its wholly owned subsidiaries, US Airways, Piedmont Airlines, Inc. (Piedmont), PSA Airlines, Inc. (PSA), Material Services Company, Inc. (MSC) and Airways Assurance Limited (AAL). MSC and AAL operate in support of the Company’s airline subsidiaries in areas, such as the procurement of aviation fuel and insurance. It has hubs in Charlotte, Philadelphia and Phoenix and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport (Washington National). During the year ended December 31, 2011, it offered scheduled passenger service on more than 3,100 flights daily to more than 200 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean, and Central and South America. It also has an East Coast route network, including the US Airways Shuttle service.


The Company had approximatel y 53 million passengers boarding its mainline flights in 2011. During 2011, the Company’s mainline operation provided scheduled service or seasonal service at 133 airports, while the US Airways Express network served 156 airports in the United States, Canada and Mexico, including 78 airports also served by its mainline operation. US Airways Express air carriers had approximately 28 million passengers boarding their planes in 2011. As of December 31, 2011, the Company operated 340 mainline jets and was supported by its regional airline subsidiaries and affiliates operating as US Airways Express under capacity purchase agreements, which operated 233 regional jets and 50 turboprops. The Company’s prorate carriers operated seven turboprops and seven regional jets at December 31, 2011.


In May 2011, US Airways Group and US Airways entered into an Amended and Restated Mutual Asset Purchase and Sale Agreement (the Mutual APA) with Delta Air Lines, Inc. (Delta). Pur suant to the Mutual APA, Delta agreed to acquire 132 slot pa! irs at LaGuardia from US Airways and US Airways agreed to acquire from Delta 42 slot pairs at Washington National and the rights to operate additional daily service to Sao Paulo, Brazil. On December 13, 2011, the transaction contemplated by the Mutual APA closed and ownership of the respective slots was transferred between the airlines. During 2011, the US Airways Express network served 156 airports in the continental United States, Canada and Mexico, including 78 airports also served by its mainline operation. During 2011, approximately 28 million passengers boarded US Airways Express air carriers’ planes, approximately 44% of whom connected to or from its mainline flights.


The Company competes with Southwest, JetBlue, Allegiant, Frontier, Virgin America and Spirit.

Advisors’ Opinion:

  • [By WALLSTCHEATSHEET]

    US Airways is an airline that operates passenger and freight planes. The company and AMR Corp.’s American Airlines began trading as a merged entity when markets opened on Monday. The stock has exploded higher in 2013 and is currently trading near highs for the year. Over the last four quarters, earnings have been decreasing while revenues have been rising, which has left investors pleased. Relative to its peers and sector, US Airways has been an average year-to-date performer. Look for US Airways to OUTPERFORM.

  • [By WALLSTCHEATSHEET]

    US Airways is an airline that operates passenger and freight planes. Friday is the last day that shares of AMR Corp. and US Airways will trade separately before the newly merged airline, American Airlines Group, will begin trading on the Nasdaq under the ticker AAL on Monday. The stock has exploded higher in 2013, but is currently pulling back. Over the last four quarters, earnings have been decreasing while revenues have been rising, which has produced optimistic investors. Relative to its peers and sector, US Airways has been an average year-to-date performer. Look for US Airways to OUTPERFORM.

  • [By Jonathan Yates]

    Stock prices for United Continental (NYSE: UAL), US Airways Group (NYSE: LCC), and Delta Airlines (NYSE: DAL) have soared for 2013.

    Pretty remarkable, when you consider the level of debt each of these companies is carrying. When the market turns, as it always does, the heavy leverage will be a tremendous burden on the ability of all of these airlines to compete and survive.

  • [By Paul Quintaro]

    Shares of Delta Air (NYSE: DAL) are down 3.6 percent at last check, shares of United Continental (NYSE: UAL) are down 3.8 percent, US Air (NYSE: LCC) shares down 2.8 percent, shares of Southwest (NYSE: LUV) down 2 percent, JetBlue (NASDAQ: JBLU) shares down 2 percent and shares of SkyWest (NASDAQ: SKYW) down nearly 4 percent.

10 Best Airline Stocks For 2015: AMR Corp (AAMRQ)


AMR Corporation (AMR), incorporated in October 1982, operates in the airline industry. The Company’s principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines, which do business as American Eagle – American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.


American, AMR Eagle and the AmericanConnection airline ser ved more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American’s passenger fleet.


To improve access to each other’s markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, Air Tahiti Nui, Alaska Airlines, B ritish Airways, Cape Air, Cathay Pacific, China Eastern Airl! ines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.


American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental companies, and other products and s ervices companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.


The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.

Advisors’ Opinion:

  • [By Jake L’Ecuyer]

    Equities Trading UP
    AMR Corporation (OTC: AAMRQ), the parent company of American Airlines, gained 8.11 percent to $11.46 after a judge rejected a bid to block the AMR US Air merger on price claims.

  • [By Dimitra DeFotis]

    On Wednesday, a federal judge cleared the way for American Airlines parent AMR (AAMRQ) to exit bankruptcy, which hastens the merger of American Air and U.S. Airways Group (LCC). Shares of AMR are down nearly 1% this morning, while U.S. Air stock dropped nearly 2%. The merged airline would be up against United Continental Holdings (UAL) and Delta Air Lines (DAL), which merged with Northwest. Shares of each are down 1%.

  • [By Johanna Bennett]

    A federal judge cleared the way for AMR (AAMRQ) to exit bankruptcy, clearing the way for a merger between American Airlines (owned by AMR) and U.S. Airways Group (LCC). AMR and U.S. Airlines rose 2.7% and 0.6% respectively.

10 Best Airline Stocks For 2015: American Airlines Group Inc (AAL)


American Airlines Group Inc., formerly AMR Corporation, incorporated in October 1982, operates in the airline industry. The Company’s principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of the Company, owns two regional airlines, which do business as American Eagle-American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.


American, AMR Eagle a nd the AmericanConnection airline served more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American’s passenger fleet.


To improve access to each other’s markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, A ir Tahiti Nui, Alaska Airlines, British Airways, Cape Air, C! athay Pacific, China Eastern Airlines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.


American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental co mpanies, and other products and services companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.


The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.

Advisors’ Opinion:

  • [By Tiernan Ray]

    Moreover, Virgin’s “premium” clientele has allowed it to generate higher ticket prices, on average, especially for key trans-continental routes, compared to American Airlines (AAL) and other legacy operators:

  • [By Chris Dieterich]

    Airlines consume a huge amount of fuel, so much in fact that fuel accounts for roughly one-third of the industry’s operating expenses. Most airlines hedge the price of fuel to reduce price volatility. Not American Airlines (AAL) or Allegiant Travel (ALGT), Morgan Stanley says, making them the two clearest beneficiaries of lower oil prices.

10 Best Airline Stocks For 2015: China Eastern Airlines Corp Ltd (CEA)

China Eastern Airlines Corporation Limited (China Eastern), incorporated on April 14, 1985, is an air carriers operating in the People’s Republic of China. As of December 31, 2010, the Company served a route network that covers 182 domestic and foreign cities in 30 countries. It operates from Shanghai’s Hongqiao International Airport and Pudong International Airport. During the year ended December 31, 2010, its flights accounted for 52.2% and 37.9% of all the flight traffic at Hongqiao International Airport and Pudong International Airport, respectively. During 2010, it accounted for approximately 31.1% of the total passenger traffic volume and 19% of the total freight volume on routes to and from Shanghai. As of December 31, 2010, it had a fleet of 355 aircraft, including 337 passenger jets each with a seating capacity of over 100 seats and 18 freighters.


Passenger Operations

During 2010, the Company operated approximately 9,600 scheduled fl ights per week, excluding charter flights, serving a route network that covers 182 domestic and foreign cities in 30 countries. During 2010, its domestic routes generated approximately 71.5% of its passenger revenues. Its heavily traveled domestic routes link Shanghai to the commercial and business centers of the People’s Republic of China, such as Beijing, Guangzhou and Shenzhen. During 2010, it also operated approximately 361 flights per week to and from Hong Kong, originating from Shanghai and 16 major cities in eastern, northern and western the People’s Republic of China. During 2010, it operated approximately 103 flights per week between mainland China and Taiwan. During 2010, its regional routes accounted for approximately 5.4% of its passenger revenues. During 2010, it operated approximately 1,079 international flights per week, serving 60 cities in 29 countries, linking Shanghai to cities in Asian and Southeast Asian countries, such as Japan, Korea, India, Singap ore, Thailand and Bangladesh and locations in Europe, the Un! ited States and Australia.


During 2010, the Company re-started its Shanghai to London and Shanghai to Moscow routes. During 2010, revenues derived from its operations on international routes accounted for approximately 23.2% of its passenger revenues. During 2010, revenues derived from its operations to and from Japan accounted for approximately 7.7% of its passenger revenues and approximately 33.4% of its international passenger revenues. Its international and regional flights and a portion of its domestic flights either originate or terminate in Shanghai, the central hub of its route network. Its operations in Shanghai are conducted at Hongqiao International Airport and Pudong International Airport. On March 16, 2010, it moved its operations at Hongqiao International Airport to the terminal two of Hongqiao International Airport. It operates its flights through three hubs located in eastern, northwestern and southwestern China, namely Shanghai, Xi’an and Kun ming, respectively.


Cargo and Mail Operations

The Company’s cargo and mail business utilizes the same route network used by its passenger airline business. It carries cargo and mail on its freight aircraft, as well as in available cargo space on its passenger aircraft. Its cargo and mail routes are international routes. As of December 31, 2010, it had seven MD-11F, four B777F and two B757-200F freight aircraft under operating leases for cargo and mail operations. It also has three Airbus A300-600R aircraft, as well as two Boeing 747-400ER freighters for its cargo operations.


The Company competes with Air China Limited, China Southern Airlines Company Limited, Hong Kong Dragon Airlines Limited, Cathay Pacific Airways, Thai Airways International, Singapore Airlines, Delta Air Lines, United Airlines, American Airlines, Air Canada, Delta, Alitalia, Air France-KLM Group, Asiana Airlines, Korean Air, Virgin Atlantic Airways, British Airways , Lufthansa German Airlines, Aeroflot and Qantas Airways.

Advisors’ Opinion:

  • [By Belinda Cao]

    The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. slumped 3.4 percent last week to a seven-month low of 89.04. The gauge traded at 13.5 times estimated earnings, 3.6 percent below the S&P’s valuation, data compiled by Bloomberg show. China Southern Airlines Co. (ZNH) and China Eastern Airlines Corp. (CEA) lost more than 6 percent April 5, while Home Inns & Hotels Management Inc. (HMIN) tumbled 16 percent in the week.

10 Best Airline Stocks For 2015: Allegiant Travel Co (ALGT)


Allegiant Travel Company, incorporated on April 4, 2006, is a leisure travel company focused on providing travel services and products to residents of small, underserved cities in the United States. The Company operates a passenger airline marketed primarily to leisure travelers in small cities, allowing it to sell air transportation both on a stand-alone basis and bundled with the sale of air-related and third party services and products. In addition, it provides air transportation under fixed fee flying arrangements. The Company provides scheduled air transportation on limited frequency nonstop flights between small city markets and leisure destinations. As of February 1, 2013, its operating fleet consisted of 58 MD-80 aircraft and six Boeing 757-200 aircraft providing service on 191 routes to 85 cities including 13 leisure destinations and 72 small cities and including cities served seasonally. In January 2012, the Company took ownership of two MD-80 aircraft. In Octobe r 2012, the Company announced the formation of Allegiant Systems, a joint venture with AvIntel and Lixar IT.


The Company provides unbundled air-related services and products in conjunction with air transportation for an additional cost to customers. These optional air-related services and products include use of its Website for purchases, use of its call center for purchases, advance seat assignment, baggage fees, priority boarding, its own travel protection product, change fees, food and beverage purchases on board and other air-related services. The Company offers third party travel products, such as hotel rooms, ground transportation (rental cars and hotel shuttle products) and attractions (show tickets) bundled with the purchase of its air transportation.


The Company provides air transportation through fixed fee agreements and charter service on a seasonal and ad-hoc basis for other customers. As of February 1, 2013, its operating aircraft consi sted of 58 MD-80 aircraft and six Boeing 757-200 aircraft. D! uring the year ended December 31, 2012, the Company has entered into purchase agreements to acquire seven Airbus A320 aircraft and operating lease agreements for an additional nine Airbus A319 aircraft.

The Company competes with AirTran, Frontier, Spirit, Southwest, US Airways, Alaska Airlines, Horizon Air, Delta, Xtra, United and American.


Advisors’ Opinion:

  • [By Chris Dieterich]

    Airlines consume a huge amount of fuel, so much in fact that fuel accounts for roughly one-third of the industry’s operating expenses. Most airlines hedge the price of fuel to reduce price volatility. Not American Airlines (AAL) or Allegiant Travel (ALGT), Morgan Stanley says, making them the two clearest beneficiaries of lower oil prices.

  • [By WWW.DAILYFINANCE.COM]

    LM Otero/AP DALLAS — The federal government is suing Southwest Airlines (LUV) after failing to reach a settlement with the carrier over allegations that repairs to dozens of planes didn’t meet safety standards. The Justice Department sued Southwest on Monday in federal district court in Washington state. The lawsuit seeks to enforce $12 million in civil penalties that the Federal Aviation Administration announced in late July. The government says that starting in 2006 Southwest hired a contractor to make extensive repairs on 44 planes to prevent the aluminum skin from cracking. The FAA says the contractor, Aviation Technical Services Inc. of Everett, Washington, failed to follow proper procedures. “We dispute the FAA’s allegations and look forward to the opportunity to vigorously defend Southwest’s record in a court of law,” Southwest spokeswoman Brandy King said Monday night. The Southwest case is the second-largest penalty that the FAA has ever sought against an airline, behind only a $24.2 million case against American Airlines. Typically, airlines negotiate with the FAA to reduce the penalties. The FAA hit Southwest with $10.2 million in penalties in 2008, and that case was settled a year later for $7.5 million. The government’s decision to sue Southwest barely three months after announcing the most recent penalty indicated the wide gap between the two sides. The most serious allegation in the current case involves replacement of parts of the fuselages on 44 planes. The FAA said Aviation Technical Services workers under Southwest’s supervision put sealant under the new skin panels but didn’t install all the rivets fast enough for the sealant to be most effective, which could create gaps for moisture to penetrate and cause corrosion. Dallas-based Southwest returned the planes to service in 2009 and kept flying some of them for months after the FAA warned the airline of the improper repairs, the FAA said. Regulators approved later repairs. Pass

  • [By Nickey Friedman]

    Regional airlines such as Southwest Airlines (NYSE: LUV  ) , Allegiant Airlines (NASDAQ: ALGT  ) , JetBlue Airways (NASDAQ: JBLU  ) , and Hawaiian Airlines must be salivating. These four in particular have been rapidly growing sales and profits, and seeing United Airlines getting off their turf can only help them.

10 Best Airline Stocks For 2015: Grupo Aeromexico SAB de CV (AEROMEX*)

Grupo Aeromexico SAB de CV is a Mexican holding company primarily engaged in the provision of passenger and cargo air transport services. It offers destinations in Mexico, the United States, Europe, Central and South America, Asia and Canada. It operates a fleet of over 110 aircrafts. The Company is primarily engaged in the passenger transportation segment, comprising regional, domestic and international routes, and package holidays; as well as in cargo transportation segment, handled mainly by its subsidiary Aeromexico Cargo. By its subsidiaries the Company is also engaged in real estate sector and in providing services to the aviation companies, including personnel training, management, and aircraft maintenance and modification. Its subsidiaries include Aerovias de Mexico SA de CV, Premier Loyalty & Marketing SAPI de CV, and Inmobiliaria Avenida Fuerza Aerea Mexicana 416 SA de CV, among others. In addition, it is a member of the SkyTeam airline alliance. Advisors’ Opinion:

  • [By Jonathan Levin]

    Volaris became Mexico’s second publicly traded carrier, after larger competitor Grupo Aeromexico SAB (AEROMEX*) sold stock in 2011. Airlines in Mexico have expanded into a void left when Cia. Mexicana de Aviacion, then largest based on passenger traffic, sought protection from creditors and ceased operations in 2010.

10 Best Airline Stocks For 2015: Indonesia Transport & Infrastructure Tbk PT (IATA)

PT Indonesia Transport & Infrastructure Tbk, formerly PT Indonesia Air Transport Tbk, is an Indonesia-based air transport service provider. The Company provides air transportation, hiring and/or leasing aircrafts, repairs and maintenance of aircrafts and trading of aviation technical equipment and related spare parts. It also provides medical evacuation services, tourism and scheduled flight services to several routes in central and eastern Indonesia. The Company operates various types of fixed wing aircrafts and helicopters, such as EC 155 B1, AS 365 Dauphin N2 twin turbine helicopter, Beechcraft 1900D, ATR 42-300, ATR 42-500 and Fokker 50. Advisors’ Opinion:

  • [By Shereen El Gazzar]

    The forecast, from the International Air Transport Association (IATA), sees the Middle East and the Asia-Pacific region with the strongest international passenger growth, with a compound average growth rate of 6.3% and 5.7% respectively.

10 Best Airline Stocks For 2015: Southwest Airlines Co (LUV)

Southwest Airlines Co., incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. As of December 31, 2011, the Company was serving 72 cities in 37 states throughout the United States. During the year ended December 31, 2011, the Company added addition services in two new states and three new cities: Charleston, South Carolina; Greenville-Spartanburg, South Carolina; and Newark, New Jersey. Southwest provides point-to-point. On May 2, 2011, the Company acquired AirTran Holdings, Inc. (AirTran).


AirTran’s route system provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran’s flights originating or terminating at its hub in Atlanta, Georgia. AirTran also serves a range of markets with non-stop service from bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. As of December 31, 2011, AirTran was serv ing 68 United States and near-international destinations, including San Juan, Puerto Rico; Cancun, Mexico; Montego Bay, Jamaica; Nassau, The Bahamas; Oranjestad, Aruba; Punta Cana, Dominican Republic, and Bermuda. As of January 31, 2012, AirTran served 65 destinations. During 2011, approximately 71% of Southwest’s customers flew non-stop, and Southwest’s average aircraft trip stage length was 664 miles with an average duration of approximately 1.8 hours.


As of December 31, 2011, Southwest offered 25 weekday roundtrips from Dallas Love Field to Houston Hobby, 13 weekday roundtrips from Phoenix to Las Vegas, 13 weekday roundtrips from Burbank to Oakland, and 12 weekday roundtrips from Los Angeles International to Oakland. Southwest offers connecting service opportunities from over 60 Southwest cities to different Volaris airports in Mexico including Aguascalientes, Guadalajara, Mexico City (MEX), Mexico City-Toluca (TLC), Morelia, and Zacatecas. The Company’ s International Connect portal conducts two separate transac! tions: one with Southwest’s reservation system and one with Volaris’s reservation system.


Southwest bundles fares into three categories: Wanna Get Away, Anytime, and Business Select. Wanna Get Away fares are lowest fares. Business Select fares are refundable and changeable, and funds may be applied toward future travel on Southwest. Business Select fares also include additional perks, such as priority boarding, a frequent flyer point multiplier, priority security and ticket counter access in select airports, and one complimentary adult beverage coupon for the day of travel. The Company’s Internet Website, southwest.com, is the avenue for Southwest Customers to purchase tickets online. During 2011, southwest.com accounted for approximately 78% of all Southwest bookings. During 2011, approximately 84% of Southwest’s Passenger revenues came through its Website, including revenues from SWABIZ, the Company’s business travel reservation Web page.

Advisors’ Opinion:

  • [By Tiernan Ray]

    Virgin has some pressure on “yields” as a result of price cutting by Southwest Airlines (LUV) in the Dallas market, and by JetBlue Airways (JBLU) in New York:

  • [By WWW.DAILYFINANCE.COM]

    Stew Milne/AP Considering that it’s largely a brick-and-mortar retailer in a world that’s buying more goods online, PetSmart (PETM) has posted some very good fundamentals recently. Given that, it might be a tempting stock for an investor to own. But it’s not going to be on the market much longer. Under pressure from some of the private equity firms that own big chunks of it, the company has solicited bids for a sale, which will end its time as a stand-alone, publicly traded entity. Its venture into private waters is the latest in a series of such deals so far this year. Here’s a look at several other companies that took (or are taking) themselves off the market in 2014. CEC Entertainment Even during its time on the high-visibility New York Stock Exchange, CEC Entertainment was not a familiar name. But the company’s key property, the Chuck E. Cheese chain of hyperactive-themed restaurants aimed at kids, has been a well-known brand for years. That might be why CEC Entertainment and financial adviser Goldman Sachs (GS) were able to find a wealthy buyer so quickly after announcing their intention to go private this past January. A mere week after that came to light, investment management firm Apollo Global Management (APO) offered $950 million plus roughly $370 million in debt assumption for the company. As that offer represented an amount 25 percent or so higher than the stock’s most recent closing price, CEC Entertainment readily accepted, and the deal closed in February. The company is probably better off in Apollo’s arms. Chuck E. Cheese’s one-stop dining and entertainment model is looking a bit creaky next to the many options for fun available to 21st-century kids. At the time of the deal’s announcement, the company’s results were sagging, with sales and net profit both declining in recent periods. Going private — well, semi-private, as Apollo is a publicly traded entity — reduces the pressure for the company to return to growth right away, and give

  • [By Adam Levine-Weinberg]

    Earnings at the top U.S. airlines — particularly American Airlines (NASDAQ: AAL  ) , Delta Air Lines (NYSE: DAL  ) , and Southwest Airlines (NYSE: LUV  ) — have soared in the past two years or so. In many ways, a new golden age of the U.S. airline industry has begun.

  • [By WWW.DAILYFINANCE.COM]

    Hero Images Inc./Alamy Using a credit card to earn frequent flier miles is a popular way to get free travel. For example, I am flying to California this Thanksgiving. I was able to book my $650 roundtrip with 25,000 miles and a fee of $11.20. That means my miles were worth 2.6 cents each. Or, to put it a different way, I earned a 2.6 percent return on my credit card spending. However, which frequent flier strategy will be best for you is not always obvious. To make the smartest decision, you should ask yourself: On which airline should I earn my miles? For my chosen airline, which credit card should I use? Airline Choice If you are a frequent flier, then the answers may be obvious. For example, if you fly 30,000 miles a year on Delta (DAL) for work, then topping up your air miles with credit card miles makes a lot of sense. But if you don’t travel a lot for business, then you should let the numbers guide your airline choice. And you really shouldn’t think about a lifetime loyalty strategy. Instead, you should think about your immediate travel goal. A free trip to Hawaii? Or Europe? Or do you just want to fly home for Thanksgiving, like I did? Your answer impacts the airline that you should chose. When redeeming miles for a free trip, airlines offer multiple redemption tiers. For example, if you want a free trip in the continental United States, American Airlines (AAL) offers MileSAAver awards (25,000 miles for a round-trip ticket), but they are only available some of the time. AAnytime Awards cost 40,000 miles. That is a huge difference. A MileCard.com study showed big differences among airlines on how many miles are required, on average, to redeem for a free ticket. For example, if you want to fly to Hawaii, the average number of miles required was 65,463 at Delta vs. 82,246 at American. Here is a summary of the best airlines, and the miles required, by region. Remember, these are averages based upon historic data, and your mileage requirement may diff