5 Best Airline Stocks To Invest In 2015: Alaska Air Group Inc. (ALK)
Alaska Air Group, Inc., through its subsidiaries, Alaska Airlines, Inc. and Horizon Air Industries, Inc., operates as an airline company serving destinations in the western United States, Canada, and Mexico. The company provides passenger air services; and freight and mail services primarily to and within the state of Alaska and on the West Coast. As of December 31, 2009, it operated a fleet of 110 jet aircraft; and Horizon Air Industries operated a fleet of 18 jets and 40 turboprop aircraft. The company was founded in 1932 and is based in Seattle, Washington.
Advisors' Opinion:- [By Ben Levisohn]
Spirit Airlines (SAVE), Delta Air Lines (DAL),Alaska Air (ALK) and American Airlines (AAL) ranked behind Allegiant and all had ROIC WACC spreads that were 4 5 points. We are of the view that an airline with ROIC – WACC spread of at least 3 points (based on the industrys historical WACC) has sufficient flexibility to pay down debt, re-invest in the business, and pursue pro-shareholder initiatives. If current trends hold, we believe United Continental (UAL) with a 2.3 point spread (produced in 2013) will be well-positioned to return capital to shareholders by 2015.
- [By Adam Levine-Weinberg]
US Airways (NYSE: LCC ) has also favored the A321 recently, and has the largest A321 fleet in the world. All of its 16 narrowbody deliveries this year will be A321s, which have 30% more seats than the Boeing 737-400s that are being retired. Meanwhile, Alaska Air (NYSE: ALK ) is following Southwest by moving to new "slimline" seats that will allow it to add six seats to each of its 737-800 aircraft and nine seats to each 737-900 aircraft. Moreover, while Alaska currently operates a variety of Boeing 737 models, the vast majority of its future orders are for the largest variant. These new aircraft, which seat 181 passengers, are replacing older planes with ! as few as 124 seats each.
source from Top Penny Stocks For 2015:http://www.topstocksforum.com/5-best-airline-stocks-to-invest-in-2015-2.html
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