Top 5 Airline Companies To Watch In Right Now

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Shares of Priceline.com (PCLN) broke through an all-time high after it posted Q4 results. Where will the online travel booking company go from here?

Find out now.

Company Profile

Priceline.com allows buyers to name their own price for everything from airline tickets to rental cars to cruises. With its patented business model, the company generates virtually all of its sales from travel-related services.

In the case of airline tickets and hotel reservations, Priceline.com keeps the difference between the price paid by the individual and what Priceline.com paid for the ticket or hotel room. With travel options in 295,000 accommodations across 175 countries, Priceline brought in $6.8 billion in sales in FY 2013.

Hot Shipping Companies To Invest In 2015: 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 Paul Ausick]

  The two airlines on the list are JetBlue Airways Corp. (NASDAQ: JBLU) and Southwest Airlines Co. (NYSE: LUV). That any airlines at all make such a list is something of a miracle.

• [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]

  The airports that experienced the largest change in share by a major operator were either: 1) on the endangered hub list (e.g. Cincinnati, Memphis and soon-to-be Cleveland); 2) targeted by a low fare airline (e.g. JetBlue (JBLU) in Boston and Fort Lauderdale, Southwest (LUV) in Baltimore and Denver, among others); or 3) Washington Reagan National and New York LaGuardia which reflected the 2012 slot/gate swap between Delta and US Airways. We are of the view that the majority of these actions were/are margin accretive as US airlines focus on redeploying their assets to airports where they can maximize returns.

Top 5 Airline Companies To Watch In Right Now: 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.

Top 5 Airline Companies To Watch In Right Now: United Continental Holdings Inc.(UAL)

United Continental Holdings, Inc., through its subsidiaries, engages in the provision of passenger and cargo air transportation services. As of February 24, 2011, it operated a total of approximately 5,675 flights a day to 372 airports on 6 continents from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, and Tokyo, as well as in Washington, D.C. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. on October 1, 2010. United Continental Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

• [By GuruFocus]

  United Continental Holdings Inc (UAL): Chairman, President and CEO Jeffery A. Smisek Bought 9,054 Shares

  Chairman, President and CEO of United Continental Holdings Inc. (UAL) Jeffery A. Smisek bought 9,054 shares on 08/27/2013 at an average price of $28.46. United Continental Holdings Inc. was incorporated under the laws of the State of Delaware on Dec. 30, 1968. United Continental Holdings Inc. has a market cap of $10.13 billion; its shares were traded at around $28.46 with a P/E ratio of 10.00 and P/S ratio of 0.35.

• [By Ben Levisohn]

  With airlines like United Continental (UAL), Delta Air Lines (DAL) and American Airlines (AAL) up more than 20% so far this year, it’s fair to ask: Can investors get any more bullish on the share?

  Agence France-Presse/Getty Images

  The answer: Probably not. Morgan Stanley’s John Godyn and team explain

  Last month, we saw the highest Higher Less Lower spread ever, at 89%, with 91% of investors responding bullishly while only 2% were bearish across 44 responses ��a new all-time record which we called Maximum(est) Bullish. This month, we��e reverted to ��ormal��Maximum Bullish levels with 87% of investors voting higher and 7% voting
  lower for a net spread of 80%. Despite the deceleration, as they typically have been in the past, such levels still indicate continued share price momentum…

  …we recommend the super-majors American Airlines, Delta Air Lines and United Continental given their significant leverage to the cycle and among the low-cost carriers we prefer Spirit Airlines (SAVE) ��our Top Airline Growth Pick for 2014.

  It’s not hard to see why. Consider Delta, which today said that one measure of revenue not only grew but should continue to do so. UBS analysts Darryl Genovesi and Raymond Wong find it hard to contain their excitement:

  With May PRASM coming through at top end of 6-7% guidance range and fuel tracking below prior guidance, we estimate that Delta is now implying Q2 EPS closer to $1.10 than consensus of $1.01 and our prior estimate of $1.03.

  Genovesi and Wong see Delta hitting $48 a share within 12 months.

  Deutsche Bank’s Michael Linenberg and team looked at changes in market shares at the fifty largest airports in the U.S. and see signs of the airline’s focus on running better businesses:

  The airports that experienced the largest change in share by a major operator were either: 1) on the endangered hub list (e.g. Cincinnati, Memphis and s

• [By Ben Levisohn]

  Wolfe Research’s Hunter Keay and Jared Shojaian think United Continental (UAL) and JetBlue (JBLU) should swap planes. They explain:

  Getty Images

  We believe both�United Continental and JetBlue have fleet inefficiencies that contribute to poor margins for both airlines. If�United Continental acquired JetBlue�� 60 E-190s (and the 24 on order), in a transaction like the one Delta Air Lines (DAL) and�Southwest Airlines (LUV) announced in 2012 when Southwest Airlines agreed to sublease its 88 B717s to Delta Air Lines, we believe both companies would benefit. This would also represent no incremental capacity to United Continental, by our math…

  We rate shares of both United Continental ($54 TP) and�JetBlue ($15 TP) as Outperform. We think both companies are underearning their potential (for different reasons), and we expect material earnings and margin improvement next year. And both companies could help in this improvement by one relatively straightforward transaction.

  they need to do something. Shares of United Continental have gained 1.8% to $41.80 at 3pm today, while JetBlue has risen 1.4% to $11, a far cry from Delta Air Lines’ 3.7% rise to $40.16 and Southwest Airlines’ 3.2% advanced to $27.71.

Top 5 Airline Companies To Watch In Right Now: Energie Holdings Inc (ELED)

Energie Holdings Inc, formerly Alas Aviation Corporation, incorporated on June 10, 2013, is in the process of acquiring, assembling and operating passenger airlines, air cargo and related ground service operators. The Company's business model includes purchasing low-scale regional operators then assembles and integrates them as subsidiaries. Corporacion Ygnus Air, S.A. (Cygnus) is a wholly owned subsidiary of the Company. It is engaged in acquisition discussions with several operators throughout Europe and around the world.

Cygnus is an aeronautical company is an integrated provider of air cargo transportation specializing in medium and long-range cargo routes. Cygnus operates a fleet of two Boeing 757-200PCF cargo jets to Europe and Africa. Cygnus has managed multi-plane operations, carrying both freight and passengers throughout Spain, Europe, the Middle East, Africa and the Americas.

Advisors' Opinion:

• [By Peter Graham]

  Small cap stocks Wi-Fi Wireless Inc (OTCMKTS: WFWL), Energie Holdings Inc (OTCMKTS: ELED) and Trend Exploration, Inc (OTCMKTS: TRDX) surged 47.06%, 25% and 12.50%, respectively, last Friday. However, none of these small cap stocks appear to be the subject of paid promotions or investor relations activities ��something that could be a good thing for investors who are not traders. Keeping that in mind, are these three small cap stocks going to be winners over the long term? Here is a closer look to help you decide on an investing or trading strategy: