Spirit Airlines Incorporated (SAVE) Remains In Growth Mode

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Stock chart

As the two-year chart below shows, Spirit Airlines Incorporated (NASDAQ:SAVE) has been the highest gaining stock in the sector for a while now. The 139% gain in that time period could easily attract more aggressive startups much to the chagrin of the industry.




SAVE Total Return Price data by YCharts

Bottom line

Even though Spirit has an aggressive growth plan, that dynamic existed even before the US Airways and American Airlines merger. The regional players will all be opportunistic to help fill voids left by the mergers of the big airlines. Combined, these three regional players only generate $12 billion in annual revenue. That amount is a far cry from the $120 billion of the sector leaders. Even including Southwest Airlines Co. (NYSE:LUV) and the group can’t reach $30 billion that leaves the group short of any behemoth alone.

The aggressive addition of Spirit Airlines Incorporated (NASDAQ:SAVE) makes it the biggest threat to the industry currently. A new entrant would be a major warning flag, but investors need to keep an eye on this firm. As long as Spirit remain somewhat in check investors should load up on the stocks.

The article Is This the Biggest Threat to the Major Airlines? originally appeared on Fool.com.

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