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3 Airline stocks you should buy this year

If you are planning to invest your money in something worthy which can yield maximum profit, then try buying airline stocks this year. In past decades investing in airlines stocks were considered as poor investment. When we talk about forty year ago, Airline deregulation act of 1978 turned down all the airline stocks, while they brought air travel to masses, it also turned airline stocks into losing investments. Top airlines companies including PAM, AM, EASTERN, and TWA shutdown or sold out due to this after affect and other like American, Delta and United filed bankruptcy.

This was the senior back forty years, but now with Southern Airlines, a new generation of non-legacy startup airline company emerged, today these airlines claim larger shares in the domestic market. Also, some have bought profitable market stock. Those who bought LUV stock in the year 1975 got into equity at the split adjust price of 1% per share.

Airline stocks faced a lot of up and downs, the stocks fallen in recent week as rising cost weigh on profit margins. Even the fuel price fluctuates due to which the amount of buying also drop.

If you want to invest in airline stock market then you should go for:

LATAM Airlines: 

LTM group offer many benefits to investors, the company is based in Santiago, Chile. It offers carrier and cargo services, it also run loyalty program called Multiplus, which allows for the exchange of points for trips and other benefits.

The airline group is previously known as LAN airlines after it got merged with TAM and created a group as LATAM airline group in the year 2012. Today LATAM is a very big name in Chile and Peru aviation market. It is also the second largest airline company in Argentina, Colombia and Ecuador.

Last year the airline also introduced their service in Melbourne, Australia, they are now deciding to serve in Washington D.C., London, and Tel Aviv. LATAM currently serve US through code sharing arrangements with other airlines. The airline group is expanding gradually with profit rate and expected to grow by 34.6% this year and 91.4% the next year. They also predicted the annual average growth rate of 53.8% per year for coming five years.

Skywest(skyw):

Source: Wikimedia

The company has become the largest regional carrier in US market measured in passenger load. The airline company is based in St. George, Utah. They offer their flights from smaller airport to larger one. It serves 247 destinations and use 453 aircraft to carry passengers, last year the company carry 35.9 million passengers.

Skywest has registered the massive growth its P/E is about 11.2. SKYW traded in $7 PER share range in 2014, but after a sustained move higher for the last few years, SKYW now trades in the $55+ RANGE which is an increase over 600%.

This year analyst forecast a growth of 44%, wall street predicts 17.9% average annual growth rate in coming years.

Spirit Airlines:

Source:Flickr

This is Miramar, Florida based company offering super fare, continues to grow as passengers are opting for low fare airlines. Due to the low cost, analyst forecast 1.5% profit growth for this year. Wall street predicts 28.1% profit growth for next year and with 13.2 forward P/E SAVE stock is attractively valued. The airline recently started their services in Greensboro and Asheville, North Carolina. The company is also planning to expand their services to Cali, Colombia in December. Another growth analysis is done on the basis that the company will offer more services in US smaller marker which is a positive aspect.

They are deciding to offer low fare in smaller US markets same what southwest airlines did.

News Source: Investorplace