Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, airline operator US Airways (NYSE: LCC) has received an alarming one-star ranking.
With that in mind, let's take a closer look at US Airways, and see what CAPS investors are saying about the stock right now.
US Airways facts
|
Headquarters (founded) |
Tempe, Ariz. (1981) |
|
Market Cap |
$2.4 billion |
|
Industry |
Airlines |
|
Trailing-12-Month Revenue |
$13.8 billion |
|
Management |
Chairman/CEO William Parker (since 2005) CFO Derek Kerr (since 2005) |
|
Return on Capital (average, past 3 years) |
9.4% |
|
Cash/Debt |
$2.4 billion / $4.8 billion |
|
Competitors |
Delta Air Lines (DAL 0.56%) Southwest Airlines (LUV -7.49%) United Continental Holdings (UAL -0.36%) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 42% of the 802 members who have rated US Airways believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, Allstar13913, succinctly summed up the bear case for our community:
There is no way a merged American Airlines and US Airways is profitable in the near term. When United and Continental merged in 2010, they spent almost $3B and 2 years later the merger hasn't been [integrated] .
Additionally, US Airways will have to raise their wage scale to American Airlines, which will hurt profitability. While a merger would create a better network and might position US Airways to a better future, I doubt it will make money.
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