Spirit Airlines Incorporated (SAVE), Southwest Airlines Co. (LUV): Should You Stay While Chairman Leaves This Airline

Alaska Air Group, Inc. (NYSE:ALK) has announced changes to bag fees, which would become effective on October, 30. This increase is going to bring additional $50 million to the company. Alaska Air has achieved five-year agreements with pilots and flight attendants. This brings certainty on the cost front and is positive for the company. Alaska Air trades at an attractive 9.89 forward P/E.

Bottom line

The airline industry is in good shape now, and the tide lifts all boats. Despite the fact that airlines stocks have risen a lot this year, they have more room to grow.

The chairman might have sold his stake at Spirit Airlines Incorporated (NASDAQ:SAVE), but the fundamentals did not change. The company is a well-run business with no debt burden and good prospects.

Both Southwest Airlines Co. (NYSE:LUV) and Alaska Air Group, Inc. (NYSE:ALK) have more room to grow too. As the stock market gets higher and higher, the valuations rise. Investors would search for cheaper stocks that represent solid businesses, and airlines are one of them.

Vladimir Zernov has no position in any stocks mentioned. The Motley Fool recommends Southwest Airlines. The Motley Fool owns shares of Spirit Airlines.

The article Should You Stay While Chairman Leaves This Airline originally appeared on Fool.com.

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