Is US Airways Group, Inc. (LCC) a Good Investment?

Alaska Air Group, Inc. (NYSE:ALK) is expected to see continued improvement in pricing, which should help drive revenues up 8% in 2012 and 7% in 2013, benefiting from capacity cuts by competitors. Capacity additions in Mexico and Hawaii should also help to boost top line growth. Jet fuel expenses are also expected to rise 11% in 2012, and 10% in 2013, but non-fuel cost declines are expected to counter the increases. Billionaire Jim Simons is one of Alaska’s top fund owners with over 3.7 million shares (check out Jim Simons’ biggest bets).

United Continental is another top airline company, but expects flat sales in 2012 and 2013. This revenue-lagging airline is seeing pressures from its Continental merger integration, but United was expected to see upwards of $200 million in merger-related cost synergies this past year. Despite these expected synergies, the airline stock looks to continue to lag the industry in revenue growth. United Continental also sports the lowest expected earnings growth of the five airline stocks listed here, at 13% annually. Legg Mason Capital’s Bill Miller is one of United’s big-time investors, owning over 5 million shares (check out Legg Mason’s top picks).

JetBlue Airways Corporation (NASDAQ:JBLU) should see solid revenue growth of 11% in 2012, on the back of 7% capacity growth. Revenues are also expected to expand 5% in 2013. The company’s stock has been slowing its growth and expansion over the last few years, while selling older aircraft and delaying delivery of new models. Jet Blue trades on the rich side at 12x earnings, which is the highest of the five stocks listed here. Steven Cohen of SAC Capital dumped his entire stake of JetBlue last quarter (check out Steven Cohen’s biggest moves).

It appears that U.S. Airways is a top pick in the airline industry in terms of growth and valuation. We are also encouraged by U.S. Airways’ return on assets of 7%, compared to other major airline operators Delta (3%) and United (0%). For more related coverage, continue reading below:

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