Allegiant Travel and Spirit Airlines are two of the best stocks to buy in the airline sector. They have the lowest costs in the business and have therefore been consistently profitable. Moreover, both have plenty of room for growth.
Southwest has long been known as a leader within the airline industry in terms of financial best practices. However, Delta seems to be assuming that role through thinking outside of the box.
As a group, the top 10 airlines turned a profit in 2012, thanks in part to $6.1 billion in combined baggage and reservation change fees.
Customer reviews are playing a larger role in how airlines make decisions.
Many airlines are replacing smaller planes in their fleets with larger ones, while adding more seats to existing aircraft. In order to keep capacity growth in check in the future, airlines may have to reduce their service in smaller markets.
The five largest U.S. airlines turned in disappointing performances in April. A disturbing breakdown in capacity discipline may have been the culprit.
Investors are delighted by Delta's plan to return $1 billion of cash to shareholders by mid-2016. However, shareholders at the other legacy carriers should not expect the same treatment.
Frontier Airlines recently became the third U.S. airline to charge a fee for carry-on bags. However, Frontier's real goal has nothing to do with bags: The company wants you to book tickets on its own website, not through online travel agencies.
Hawaiian Airlines has seen its profitability pressured for the last two quarters due to heavy competition in the West Coast-Hawaii travel market and Japan's weak yen. However, these headwinds will be mitigated in the next several quarters, making the company an attractive investment opportunity.
The majority of travelers are going to have a hard time avoiding this fee if it continues to gain in popularity among airlines.