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.

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