Spirit Airlines Incorporated (SAVE), Delta Air Lines, Inc. (DAL): This Budget Airline Is Going Up Against the Big Players

United Continental Holdings Inc (NYSE:UAL) is still suffering years after the merger. In the first quarter of this year, the company was able to increase its top line by just 1.4%, bringing revenue to $8.72 billion. Revenue growth is great, but the better news is in the decreasing net loss.

The company made serious efforts to reduce its operating costs to lower its total net loss to $417 million. For the same period last year, the total losses were $448 million. The company is on the right track.

The company has seasonal profitability. For the last five years, the company has been in the red three years. This year, the company should see three profitable quarters and just one unprofitable quarter. This is because travel industry revenue and costs are often skewed towards different months of the year.

A company that swings from red to black and back to red isn’t a great investment. Investors should stay away from United Continental Holdings Inc (NYSE:UAL).

Final thoughts

The airline industry has a lot of competition. There are many factors that affect the overall success of a company. Spirit Airlines Incorporated (NASDAQ:SAVE) is on the move trying to take some market share away from the larger airlines. It doesn’t want to be the next Delta Air Lines, Inc. (NYSE:DAL), but it is still seeking strong growth this year. The company can be a great vehicle for the right investor.

The article This Budget Airline Is Going Up Against the Big Players originally appeared on Fool.com and is written by Austin Higgins.

Austin Higgins has no position in any stocks mentioned. The Motley Fool owns shares of SPIRIT AIRLINES INC. Austin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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