Best Airline Companies For 2014

With shares of US Airways (NYSE:LCC) trading around $24, is LCC an OUTPERFORM, WAIT AND SEE, or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:

T = Trends for a Stock’s Movement

US Airways operates and owns passenger and freight airline carriers. Consumers and companies across the nation are now looking to travel at an increasing rate, and since air travel is quicker and less expensive, it is becoming a common transportation method for many. As costs decrease and flights become more efficient, look for business and retail customers to fly more than ever.

Beginning next summer, US Airways customers will have new non-stop daily service at their disposal from the airline�� international gateway at Philadelphia International Airport to Edinburgh. US Airways will operate flights to and from Edinburgh Airport on 176-seat dual-class Boeing 757 aircraft between May 23 and October 1. The new service will complement US Airways��current flights between Philadelphia and several European destinations, including locations spanning the United Kingdom and British Isles like Glasgow, Dublin, Shannon, Manchester, and London Heathrow.

Top 10 Companies To Invest In 2015: Gogo Inc (GOGO)

Gogo Inc incorporated on December 14, 2009, is a holding company. The Company operates through its two operating subsidiaries, Gogo LLC and Aircell Business Aviation Services LLC. The Company provides in-flight connectivity and wireless in-cabin digital entertainment solutions. It provide turnkey solutions for passengers to extend their connected lifestyles to the aircraft cabin. It operates in two segments: commercial aviation (CA) and business aviation (BA). Its CA business provides in-flight connectivity and digital entertainment solutions to commercial airline passengers through their personal Wi-Fi enabled devices.

The Company provides Gogo Connectivity to passengers to nine North American airlines that provide Internet connectivity to their passengers. It provide Gogo Connectivity to passengers on Delta Air Lines, American Airlines, Virgin America, Alaska Airlines, US Airways, Frontier Airlines and Air Tran Airways. It also provide Gogo Connectivity to passengers on a small number of aircraft operated by United Airlines and Air Canada. As of September 30, 2011, the Company had equipped 1,177 commercial aircraft, representing approximately 85% of Internet-enabled North American commercial aircraft, which were operated on more than 4,200 daily flights.

The Company�� BA segment sells equipment and provides services for in-flight Internet connectivity and other voice and data communications under its Gogo Biz and Aircell branded products and services. BA�� customers include original equipment manufacturers of private jet aircraft such as Gulfstream, Cessna, Hawker Beechcraft, Bombardier, Dassault, Embraer, NetJets, Flexjets, Flight Options and CitationAir. It sells equipment for three of the primary connectivity network options in the business aviation market: Gogo Biz, through which it delivers broadband Internet connectivity over its (air-to-ground )ATG network, and the Iridium and Inmarsat SwiftBroadband satellite networks. As of September 30, 2011, the Company had m! ore than 700 Gogo Biz systems in operation and more than 4,600 aircraft with Iridium satellite communications systems in operation, and it has sold more than 100 Inmarsat SwiftBroadband systems. It provides in-flight broadband connectivity across the contiguous United States and portions of Alaska through 3 MHz of FCC-licensed ATG spectrum and its network of cell sites.

Through its Gogo platform, the Company provides passengers with a convenient and easy way to access the Internet, view video content, send and receive email and instant messages, and access corporate VPNs on Gogo-equipped commercial aircraft. It provides Internet access through Gogo Connectivity, on-demand streaming video offerings through Gogo Vision and access to a variety of free entertainment and service offerings, customized for each airline, through Gogo Signature Services.

The Company competes with Panasonic Avionics, Row 44, OnAir, LiveTV and Thales.

Advisors' Opinion:

• [By Lisa Levin]

  Gogo (NASDAQ: GOGO) shares gained 9.19% to touch a new 52-week high of $30.90 on Jim Cramer/Mad Money mention.

  Western Digital (NASDAQ: WDC) shares rose 2.75% to reach a new 52-week high of $74.43 after the company's board declared a cash dividend of $0.30 per share for the quarter ending Dec. 27, 2013.

Best Airline Companies For 2014: Ryanair Holdings PLC (RYA)

Ryanair Holdings plc (Ryanair Holdings), is a holding company for Ryanair Limited (Ryanair). Ryanair operates a low-cost, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, and Morocco. As of June 30, 2012, the Company offered approximately over 1,500 scheduled short-haul flights per day serving approximately 160 airports largely throughout Europe with an operating fleet of 294 aircraft flying approximately 1,500 routes. Ryanair sells seats on a one-way basis. The Company also holds a 29.8% interest in Aer Lingus Group plc. As of June 30, 2012, Ryanair�� operating fleet was composed of 294 Boeing 737-800 aircraft, each having 189 seats. Ryanair�� fleet totaled 294 Boeing 737-800s at March 31, 2012. As of June 30, 2012, Ryanair owned and operated four Boeing 737-800 full flight simulators for pilot training. Advisors' Opinion:

• [By Inyoung Hwang]

  Ryanair Holdings Plc (RYA), the discount airline operator that�� the second-biggest stock in Ireland�� ISEQ index, declined 1.7 percent to 7.23 euros in Dublin. Kerry Group, a supplier of food ingredients, sank 1.4 percent to 45.24 euros.

Best Airline Companies For 2014: AMR Corp (AAMRQ)

AMR Corporation (AMR), incorporated in October 1982, operates in the airline industry. The Company�� principal subsidiary is American Airlines, Inc. (American). As of December 31, 2011, American provided scheduled jet service to approximately 160 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. AMR Eagle Holding Corporation (AMR Eagle), a wholly owned subsidiary of AMR, owns two regional airlines, which do business as American Eagle - American Eagle Airlines, Inc. and Executive Airlines, Inc. (collectively, the American Eagle carriers). American also contracts with an independently owned regional airline, which does business as AmericanConnection (the AmericanConnection carrier). As of December 31, 2011, AMR Eagle operated approximately 1,500 daily departures, offering scheduled passenger service to over 175 destinations in North America, Mexico and the Caribbean.

American, AMR Eagle and the AmericanConnection airline served more than 250 cities in approximately 50 countries with, on average, 3,400 daily flights and the combined network fleet numbered approximately 900 aircraft as of December 31, 2011. American Airlines is also a founding member of the oneworld alliance, which includes British Airways, Cathay Pacific, Finnair, LAN Airlines, Iberia, Qantas, JAL, Malev Hungarian, Mexicana, Royal Jordanian and S7 Airlines. Together, oneworld members serve 750 destinations in approximately 150 countries, with about 8,500 daily departures. American is also one of the scheduled air freight carriers in the world, providing a range of freight and mail services to shippers throughout its system onboard American�� passenger fleet.

To improve access to each other�� markets, American has established marketing relationships with other airlines and rail companies. As of December 31, 2011, American had marketing relationships with Air Berlin, Air Pacific, Air Tahiti Nui, Alaska Airlines, British Airways, Cape Air, Cathay Pacific, China Eastern Airl! ines, Dragonair, Deutsche Bahn German Rail, EL AL, Etihad Airways, EVA Air, Finnair, GOL, Gulf Air, Hawaiian Airlines, Iberia, Japan Airlines (JAL), Jet Airways, JetStar Airways, LAN (includes LAN Airlines, LAN Argentina, LAN Ecuador and LAN Peru), Niki Airlines, Qantas Airways, Royal Jordanian, S7 Airlines, and Vietnam Airlines.

American has established the AAdvantage frequent flyer program (AAdvantage). AAdvantage members earn mileage credits by flying on American, American Eagle and the AmericanConnection carrier or by using services of other participants in the AAdvantage program. Mileage credits can be redeemed for free, discounted or upgraded travel on American, American Eagle or other participating airlines, or for other awards. American sells mileage credits and related services to other participants in the AAdvantage program. There are over 1,000 program participants, including a credit card issuer, hotels, car rental companies, and other products and services companies in the AAdvantage program. As of December 31, 2011, AAdvantage had approximately 69 million total members.

The Company competes with Alaska Airlines (Alaska), Delta Air Lines (Delta), Frontier Airlines, JetBlue Airways (JetBlue), Hawaiian Airlines, Southwest Airlines (Southwest) and AirTran Airways (Air Tran), Spirit Airlines, United Airlines (United) and Continental Airlines (Continental), US Airways and Virgin America Airlines.

Advisors' Opinion:

• [By Jake L'Ecuyer]

  Equities Trading UP
  AMR Corporation (OTC: AAMRQ), the parent company of American Airlines, gained 8.11 percent to $11.46 after a judge rejected a bid to block the AMR US Air merger on price claims.

Best Airline Companies For 2014: Southwest Airlines Co (LUV)

Southwest Airlines Co., incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. As of December 31, 2011, the Company was serving 72 cities in 37 states throughout the United States. During the year ended December 31, 2011, the Company added addition services in two new states and three new cities: Charleston, South Carolina; Greenville-Spartanburg, South Carolina; and Newark, New Jersey. Southwest provides point-to-point. On May 2, 2011, the Company acquired AirTran Holdings, Inc. (AirTran).

AirTran�� route system provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran�� flights originating or terminating at its hub in Atlanta, Georgia. AirTran also serves a range of markets with non-stop service from bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. As of December 31, 2011, AirTran was serving 68 United States and near-international destinations, including San Juan, Puerto Rico; Cancun, Mexico; Montego Bay, Jamaica; Nassau, The Bahamas; Oranjestad, Aruba; Punta Cana, Dominican Republic, and Bermuda. As of January 31, 2012, AirTran served 65 destinations. During 2011, approximately 71% of Southwest�� customers flew non-stop, and Southwest�� average aircraft trip stage length was 664 miles with an average duration of approximately 1.8 hours.

As of December 31, 2011, Southwest offered 25 weekday roundtrips from Dallas Love Field to Houston Hobby, 13 weekday roundtrips from Phoenix to Las Vegas, 13 weekday roundtrips from Burbank to Oakland, and 12 weekday roundtrips from Los Angeles International to Oakland. Southwest offers connecting service opportunities from over 60 Southwest cities to different Volaris airports in Mexico including Aguascalientes, Guadalajara, Mexico City (MEX), Mexico City-Toluca (TLC), Morelia, and Zacatecas. The Company�� International Connect portal conducts two separate transac! tions: one with Southwest�� reservation system and one with Volaris�� reservation system.

Southwest bundles fares into three categories: Wanna Get Away, Anytime, and Business Select. Wanna Get Away fares are lowest fares. Business Select fares are refundable and changeable, and funds may be applied toward future travel on Southwest. Business Select fares also include additional perks, such as priority boarding, a frequent flyer point multiplier, priority security and ticket counter access in select airports, and one complimentary adult beverage coupon for the day of travel. The Company�� Internet Website, southwest.com, is the avenue for Southwest Customers to purchase tickets online. During 2011, southwest.com accounted for approximately 78% of all Southwest bookings. During 2011, approximately 84% of Southwest�� Passenger revenues came through its Website, including revenues from SWABIZ, the Company�� business travel reservation Web page.

Advisors' Opinion:

• [By WWW.DAILYFINANCE.COM]

  LM Otero/AP DALLAS -- The federal government is suing Southwest Airlines (LUV) after failing to reach a settlement with the carrier over allegations that repairs to dozens of planes didn't meet safety standards. The Justice Department sued Southwest on Monday in federal district court in Washington state. The lawsuit seeks to enforce $12 million in civil penalties that the Federal Aviation Administration announced in late July. The government says that starting in 2006 Southwest hired a contractor to make extensive repairs on 44 planes to prevent the aluminum skin from cracking. The FAA says the contractor, Aviation Technical Services Inc. of Everett, Washington, failed to follow proper procedures. "We dispute the FAA's allegations and look forward to the opportunity to vigorously defend Southwest's record in a court of law," Southwest spokeswoman Brandy King said Monday night. The Southwest case is the second-largest penalty that the FAA has ever sought against an airline, behind only a $24.2 million case against American Airlines. Typically, airlines negotiate with the FAA to reduce the penalties. The FAA hit Southwest with $10.2 million in penalties in 2008, and that case was settled a year later for $7.5 million. The government's decision to sue Southwest barely three months after announcing the most recent penalty indicated the wide gap between the two sides. The most serious allegation in the current case involves replacement of parts of the fuselages on 44 planes. The FAA said Aviation Technical Services workers under Southwest's supervision put sealant under the new skin panels but didn't install all the rivets fast enough for the sealant to be most effective, which could create gaps for moisture to penetrate and cause corrosion. Dallas-based Southwest returned the planes to service in 2009 and kept flying some of them for months after the FAA warned the airline of the improper repairs, the FAA said. Regulators approved later repairs. Pass

• [By Dimitra DeFotis]

  “… taken off over the past year as the industry’s ‘rationalization’ has meant higher fares, reduced capacity, and fewer amenities for passengers. Some measure of competition still comes from discounters such as Southwest (LUV), JetBlue (JBLU), and Spirit (SAVE). What’s left of antitrust enforcement ought to prevent these cut-rate carriers being scooped up by the big three of the skies, although Jack Hough noted … that Alaska Air (ALK) could draw takeover interest over the long haul (“Merger Mania May Soon Be on the Way,” Nov. 21) (subscription required).

• [By Dan Caplinger]

  2. Earnings surprises came from some big names.
  A number of well-known stocks were among the best and worst performers when it came to earnings surprises. On the positive side, Southwest Airlines (NYSE: LUV  ) and Amazon.com (NASDAQ: AMZN  ) posted impressive results, while Dell (NASDAQ: DELL  ) weighed in with a negative surprise. For Southwest, eschewing the full extent of ancillary fees that most of its peers have imposed has held back profits somewhat, but higher fares and greater integration of its AirTran acquisition from two years ago helped the company. Amazon, meanwhile, saw revenue gains of more than 20% and earnings that nearly doubled expectations, but shareholders focused instead on decelerating sales guidance for the current quarter.

• [By Ben Levisohn]

  United Continental (DAL) has gained 20% since the start of the year, while American Airlines (AAL) and Delta Air Lines (DAL) have risen 15%. Southwest Airlines (LUV) has gained 11%.

Best Airline Companies For 2014: JetBlue Airways Corporation(JBLU)

JetBlue Airways Corporation provides passenger air transportation services in the United States. As of December 31, 2011, it operated approximately 700 daily flights to 70 destinations in 22 states, Puerto Rico, and Mexico; and 12 countries in the Caribbean and Latin America through a fleet of 120 Airbus A320 aircraft and 49 EMBRAER 190 aircraft. The company, through its subsidiary, LiveTV, LLC, provides in-flight entertainment, voice communication, and data connectivity systems and services for commercial and general aviation aircraft, including live in-seat satellite television, digital satellite radio, wireless aircraft data link service, and cabin surveillance systems. JetBlue Airways Corporation was founded in 1998 and is based in Forest Hills, New York.

Advisors' Opinion:

• [By Ben Levisohn]

  One of the catalysts for the relative outperformance of JetBlue�� (JBLU) share price in recent months has been the idea that the more its financial performance disappoints, the more likely and more aggressive it will be at implementing a more ��hareholder-friendly��fee/seat densification strategy – we believe this could apply to Southwest in the future…

• [By Asit Sharma]

  Earnings and valuation continue to look attractive
  Alaska Airlines continues to impress investors with each earnings report. In its most recent filing for Q4 2013, the company reported record earnings of $78 million, a 68% increase over the prior year's quarter. The positive earnings were driven primarily by a 7% increase in revenue. When a company can increase earnings so significantly, it can offset a rise in the stock in terms of relative valuation, and we see this phenomenon at work with Alaska Airlines. When we reviewed the company's stock in November, ALK traded at 11.3 times trailing 12-month earnings. Since then, even after its price appreciation of more than one-fourth of its value, the airline's P/E ratio has remained in the same ballpark, at 13.0. This compares favorably to the peer group we previously compared ALK to. Currently, Southwest Airlines (NYSE: LUV  ) trades at 22.5 trailing 12-month earnings, and the P/E ratios of the rest of the group are as follows:�Spirit Airlines�-- 25.3,�Republic Airways Holdings�-- 19.1, and�JetBlue Airways (NASDAQ: JBLU  ) -- 17.6. Thus, relative to its competitors, Alaska still looks cheap.

• [By Ben Levisohn]

  Yesterday, we learned that New York had its first reported case of Ebola but that hasn’t stopped investors from piling into American Airlines (AAL), Delta Air Lines (DAL) and JetBlue (JBLU) today.

• [By Casey Kelly-Barton]

  United Continental Holdings' (NYSE: UAL  ) announcement last week that it's restructuring its MileagePlus program to give more free miles to passengers who spend the most -- and fewer to the folks who fill the cheap seats -- was no surprise to industry watchers. The decision, which takes effect in 2015, follows similar moves by budget carriers JetBlue� (NASDAQ: JBLU  ) ,�Southwest� (NYSE: LUV  ) , and Virgin as well as Delta Air Lines (NYSE: DAL  ) . American� (NASDAQ: AAL  ) is expected to follow suit once its merger with USAirways is settled.

Best Airline Companies For 2014: Air France KLM SA (AFLYY.PK)

Air France-KLM SA (Air France-KLM), incorporated on April 23, 1947, is an airline engaged in the business of passenger transportation. It has four segments: Passenger, Cargo, Maintenance and Other. The Company�� primary business is to hold direct or indirect interests in the capital of air transport companies and, more generally, in any companies in France or elsewhere whose purpose is related to the air transport business. Air France-KLM activities also include cargo, aeronautics maintenance and other air-transport related activities including, principally, catering and charter services. At March 31, 2011, the Air France-KLM group fleet consists of 609 aircraft, of which 593 were operational. At March 31, 2011, 274 aircraft were fully owned (45% of the fleet), 117 aircraft were under finance lease representing 19% of the fleet and 218 under operating lease representing 36% of the fleet.

Passenger

Passenger operating revenues primarily come from passenger transportation services on scheduled flights with the Company�� airline code, including flights operated by other airlines under code-sharing agreements. They also include commissions paid by SkyTeam alliance partners, code-sharing revenues, revenues from excess baggage and airport services supplied by the Company�� to third party airlines and services linked to information technology (IT) systems.

Cargo

Cargo operating revenues come from freight transport on flights under the companies��codes, including flights operated by other partner airlines under code-sharing agreements. Other cargo revenues are derived principally from sales of cargo capacity to third parties. During the fiscal year ended March 31, 2011, the Company transported more than 1.5 million tons of cargo, of which 66% in the bellies of passenger aircraft and 33% in the cargo fleet, to a network of approximately 254 destinations in approximately 111 countries. Air France-KLM Cargo has a product range organized around four prod! uct families, Equation, Cohesion, Variation and Dimension.

Maintenance

Maintenance operating revenues are generated through maintenance services provided to other airlines and customers globally. The Company�� two engine shops are located in Amsterdam and Paris. CFM56 engine shops support the fleet of CFM56-5 power plants in the world, with nearly 400 engines operated by numerous airlines. CF6-80E1 provides full-service maintenance. KLM Engineering & Maintenance (AFI KLM E&M) provides an alternative to the manufacturer�� services in terms of overhaul and services on this engine with its offering supported by technological infrastructure.

Other

The revenues from this segment come primarily from catering supplied by the Company to third-party airlines and to charter flights operated primarily by Transavia. The catering business is regrouped around Servair, an Air France subsidiary which generates more than 90% of the revenues of this activity, and KLM Catering Services, a subsidiary of KLM.

Advisors' Opinion:

• [By El Torero]

  The airline will undoubtedly pounce on the likely failings of rival companies, though this is also an area where easyJet will be eager to move in. Spanair is gone as is Malev Zrt, two former Ryanair rivals. Air France-KLM (AFLYY.PK) and Iberia are in trouble, among other European airlines. Ryanair will take advantage of such weaknesses in its aim of becoming Europe's out-and-out dominant short-haul carrier. As other airlines cut routes, airports are now looking to Ryanair to take up the newly available airport space. As a result of this, with "opportunities opening up in Germany, Scandinavia and Central Europe" in particular, Ryanair's deputy chief executive, Howard Millar sees the Irish company increase its market share from 15 percent to 20 percent before the end of the decade.