I’m Leaving on A Jetplane: Southwest Airlines Co. (LUV) and More

When compared to Southwest Airlines, Delta has a much more appealing P/E ratio at just 12.3, right around the industry average but below that of the S&P 500. Delta is trading at just 0.34 times sales, which is pretty cheap by anyone’s standards.

Probably Not Where Your Money Should Be

Among the profitable airlines is a little company that you might have heard of–US Airways Group. The company owns common stock in US Airways, America West Holdings, Piedmont, PSA, and others. It’s quite a long list of companies, but that long list doesn’t always transfer nicely into a good looking bottom line.

This company is expected to see their earnings grow over the next two years, not by nearly as much as Southwest or Delta though. FY 2013 gains are looking to be around 5.93% and FY 2014 is looking at a lackluster 2.18%. Those are the types of numbers you’d expect to see from Dow components that are the stability of your portfolio, not from a $2.4 billion airline.

Bottom Line

I like both Southwest and Delta at their current levels. Both companies present different opportunities, with one being a US provider and the other trying desperately to become a world leader once again. If dividends typically tip you over the edge then I’d recommend that you look into Southwest.

I do not like, and would not advise, investing in US Airways. Their growth isn’t expected to be as good as their counterparts and I don’t see them offering anything worthwhile for me to put my money in.

The article I’m Leaving on A Jetplane originally appeared on Fool.com and is written by Ash Anderson.

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