Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Delta Air Lines, Inc. (DAL), US Airways Group Inc (LCC): An Easy Way to Invest in the Airline Industry

According to its latest earnings report, US Airways Group Inc (NYSE:LCC)’ revenue rose by 7% to $3.4 billion, and its net income jumped from $48 million to $69 million. Its balance sheet carries below-average debt, with a debt-to-equity ratio of 1.7 compared to the industry’s average of 2.0. The stock trades with a P/E of 5.9, which may be regarded as a value play.

Bring the investment spirit on!

Spirit Airlines Incorporated (NASDAQ:SAVE) is undergoing rapid expansion. The company has ordered 20 new Airbus A321 aircraft on top of the existing 96 aircraft that are expected to be delivered between 2015 and 2017. Further, the airline has converted 10 of its existing A320 aircraft orders to A321. The order is expected to be delivered in 2017 and 2018. The carrier is remodeling its fleet, which should improve its operating margins.

In addition, the carrier hosted two open houses for new flight attendants in Chicago. The hiring of employees is a strong sign of company growth.

Last but not least, Spirit Airlines Incorporated (NASDAQ:SAVE) reported astonishing traffic in June. Its revenue passenger miles (RPM) rose by 25% to 1.0 billion. To meet the passenger demand, the carrier augmented its available seat miles by 22% to 1.2 billion. Its load factor increased by 2.2% to 88.3%. In brief, the carrier is having strong passenger traffic, and it is adding more aircraft to capture as much revenue as possible.

The stock trades with a P/E ratio of 21.7, well below the industry’s average of 33.6

The (Robin) Foolish bottom line

The airline industry is rebounding, and you should take advantage of it today. The three carriers herein described offer an appealing investment prospectus, which surely will bring capital appreciation to you growth-oriented portfolio. They are expanding rapidly by opening new routes to South America and by adding new aircraft to the fleets.

Robinson Roacho has no position in any stocks mentioned. The Motley Fool owns shares of SPIRIT AIRLINES INC. (NASDAQ:SAVE) Robinson is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article An Easy Way to Invest in the Airline Industry originally appeared on is written by Robinson Roacho.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.