Alaska Airlines, Delta Airlines, Southwest Airlines and Virgin Airlines are all flying high these days as a result of an improving economy, lower fuel prices, an increasing number of of people choosing to travel by air, and the airlines ability to manage the availability of airline seats. And this should only improve as each of these increase.
Alaska Air Group provides passengers and cargo air transportation services primarily in the United States. The company operates through Alaska Mainline and Alaska Regional segments. It serves approximately 100 cities in Alaska, the Lower 48, Hawaii, Canada, and Mexico. As of December 31, 2014, the company’s fleet consisted of 137 Boeing 737 jet aircraft; and 51 Bombardier Q400 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.
(Summary) (Company) (Chart)
(Summary) (Company) (Chart)
| 10 October 2015 Price $75.92 1yr Target $88.14 Analysts 14 Dividend $0.88 Payout Ratio 16.00% 1yr Cap Gain 16.09% Yield 1.15% 1yr Tot Return 17.24% | EPS (ttm) $5.50 EPS next yr $6.89 EPS next 5yr 18.02% 1yr Potential $124.15 P/E 13.77 PEG 0.76 Beta 0.82 Market Cap $9.65 Bil Revenues $5.48 Bil Earnings $729.00 Mil Profit Margin 13.30% | 1yr EarnGR 23.46% 3yr EarnGR 38.15% 5yr EarnGR 80.60% 1yr DivGR 43.33% 3yr DivGR --- 5yr DivGR --- Quick Ratio 0.80 Current Ratio 0.90 Debt/Equity 0.34 ROA 11.50% ROE 33.40% |
Delta Air Lines provides scheduled air transportation for passengers and cargo worldwide. The company operates in two segments, Airline and Refinery. Its route network comprises various gateway airports in Amsterdam, Detroit, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita. The company sells its tickets through various distribution channels, including mobile and telephone reservations, delta.com, traditional brick and mortar, and online travel agencies. It also provides maintenance and repair services for third parties, as well as offers staffing services, professional security and training services, and aviation solutions; vacation packages; and aircraft charters, and aircraft management and programs. The company operates approximately 900 aircrafts. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia.
(Summary) (Company) (Chart)
(Summary) (Company) (Chart)
| 10 October 2015 Price $47.21 1yr Target $60.40 Analysts 15 Dividend $0.54 Payout Ratio 23.58% 1yr Cap Gain 27.93% Yield 1.14% 1yr Tot Return 29.07% | EPS (ttm) $2.29 EPS next yr $5.59 EPS next 5yr 20.59% 1yr Potential $115.09 P/E 20.07 PEG 0.97 Beta 0.79 Market Cap $36.56 Bil Revenues $40.92 Bil Earnings $1.88 Bil Profit Margin 4.59% | 1yr EarnGR -93.58% 3yr EarnGR -8.18% 5yr EarnGR --- 1yr DivGR 175.00% 3yr DivGR --- 5yr DivGR --- Quick Ratio 0.60 Current Ratio 0.70 Debt/Equity 0.97 ROA 3.50% ROE 18.90% |
Southwest Airlines operates passenger airlines that provide scheduled air transportation services in the United States and near-international markets. As of December 31, 2014, it operated 665 Boeing 737 aircraft; and had 12 Boeing 717 aircraft. The company served 93 destinations in 40 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 5 near-international countries, including Mexico, Jamaica, The Bahamas, Aruba, and the Dominican Republic. It also sells frequent flyer points and related services to business partners participating in the Rapid Rewards frequent flyer program, including car rental agencies, hotels, restaurants, and retail locations. The company was founded in 1967 and is headquartered in Dallas, Texas.
(Summary) (Company) (Chart)
(Summary) (Company) (Chart)
| 10 October 2015 Price $39.94 1yr Target $50.71 Analysts 14 Dividend $0.30 Payout Ratio 12.93% 1yr Cap Gain 26.96% Yield 0.75% 1yr Tot Return 27.71% | EPS (ttm) $2.32 EPS next yr $3.81 EPS next 5yr 26.84% 1yr Potential $102.26 P/E 16.71 PEG 0.62 Beta 0.65 Market Cap $25.56 Bil Revenues $18.95 Bil Earnings $1.58 Bil Profit Margin 4.59% | 1yr EarnGR 56.19% 3yr EarnGR 91.21% 5yr EarnGR 66.02% 1yr DivGR 144.44% 3yr DivGR 120.62% 5yr DivGR 61.53% Quick Ratio 0.60 Current Ratio 0.70 Debt/Equity 0.40 ROA 7.60% ROE 22.40% |
Virgin America provides scheduled air travel services. As of December 31, 2014, it provided services to 21 airports in the United States and Mexico with a fleet of approximately 53 Airbus single-aisle aircraft, including of 10 Airbus A319s and 43 Airbus A320s. The company was formerly known as Best Air Holdings, Inc., and changed its name to Virgin America Inc. in November 2005. Virgin America Inc. was incorporated in 2004 and is headquartered in Burlingame, California.
(Summary) (Company) (Chart)
(Summary) (Company) (Chart)
| 10 October 2015 Price $33.91 1yr Target $39.73 Analysts 10 Dividend $1.39 Payout Ratio 48.94% 1yr Cap Gain 17.16% Yield 4.09% 1yr Tot Return 21.25% | EPS (ttm) $2.84 EPS next yr $4.56 EPS next 5yr 24.62% 1yr Potential $112.26 P/E 11.69 PEG 0.47 Beta --- Market Cap $1.44 Bil Revenues $1.51 Bil Earnings $124.10 Mil Profit Margin 8.21% | 1yr EarnGR --- 3yr EarnGR --- 5yr EarnGR --- 1yr DivGR --- 3yr DivGR --- 5yr DivGR --- Quick Ratio 1.30 Current Ratio 1.30 Debt/Equity 0.26 ROA 11.90% ROE 42.30% |
My Perspective
The airline industry hasn't had a very good history of taking care of its shareholders but that may finally be changing. I think the airlines may have finally figured out how to operate as a business with a long term strategic view for survival. The only major airline here (Delta) has survived battles with other major airlines, many of which are no longer in existence. The other three have operated in, and been very successful, in niche areas, but as they grow they'll start to come into conflict with the major airlines.
I'm of the belief that the airlines may be on the verge of a major move higher along with the economies of the world. And these four airlines are the four that I'd be interested in because they each have a nice one year estimated total return on investment. Based on the data above I'd be most interested in Alaska Air and Southwest Airlines.
As a result, I'll probably open a small position in one of these two airlines in the near future and see how the position progresses.
The airline industry hasn't had a very good history of taking care of its shareholders but that may finally be changing. I think the airlines may have finally figured out how to operate as a business with a long term strategic view for survival. The only major airline here (Delta) has survived battles with other major airlines, many of which are no longer in existence. The other three have operated in, and been very successful, in niche areas, but as they grow they'll start to come into conflict with the major airlines.
I'm of the belief that the airlines may be on the verge of a major move higher along with the economies of the world. And these four airlines are the four that I'd be interested in because they each have a nice one year estimated total return on investment. Based on the data above I'd be most interested in Alaska Air and Southwest Airlines.
As a result, I'll probably open a small position in one of these two airlines in the near future and see how the position progresses.
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