Top Airline Stocks To Own For 2014

The merger of US Airways (NYSE: LCC  ) and American Airlines took another step closer to reality, and airline stocks across the industry cheered the news. But there's another side to the creation of another giant airline. Fewer airlines, particularly national airlines, means lower supply, and that means higher prices for you and me. So while investors are celebrating today, those looking to plan a vacation will pay the price.

More consolidation and fewer choices
Bankrupt AMR Corporation, which owns American Airlines, filed a plan to exit bankruptcy pending a merger with US Airways, creating the largest airline in the U.S. The plan details how much of the new company stakeholders would end up with, along with other issues that have complicated negotiations. AMR creditors and unions would own 72% of the new company, with US Airways shareholders owning the remaining 28%.

One of the sticking points was executive positions and CEO pay. Under the latest plan, AMR CEO Tom Horton would get a proposed $20 million severance if the deal goes through. The offer was brought back into play today after a federal judge denied a similar payout in previous negotiations. If you want to see just how much airline executives care about unions, bondholders, and customers, just take note of how much time and energy they're spending to make sure the CEO of a bankrupt company gets a multimillion-dollar bonus on his way out the door.

Best Prefered Stocks To Own Right Now: Copa Holdings SA (CPA)

Copa Holdings, S.A. (Copa Holdings), incorporated on May 06, 1998, is a Latin American provider of airline passenger and cargo service through its two principal operating subsidiaries, Copa Airlines and Copa Colombia. Copa Airlines operates from its position in the Republic of Panama, and Copa Colombia provides service within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica, complemented with service within Colombia. As of December 31, 2012, the Company operated a fleet of 83 aircraft with an average age of 5.13 years; consisting of 57 modern Boeing 737-Next Generation aircraft and 26 Embraer 190 aircraft. . As of December 31, 2012, the Company offers approximately 334 daily scheduled flights among 64 destinations in 29 countries in North, Central and South America and the Caribbean, mainly from its Panama City Hub.

Copa provides passengers with access to flights to more than 150 other destinations through codeshare arrangements with UAL pursuant to which each airline places its name and flight designation code on the other�� flights. As of December 31, 2012, Copa had firm orders, including purchase and lease commitments, for 35 additional Boeing 737-Next Generation aircraft. Copa also has options for an additional 14 Boeing 737-Next Generation aircraft.

The Company competes with Avianca-Taca, American Airlines, Delta Air Lines, American Airlines and LAN Group.

Advisors' Opinion:

• [By Arie Goren]

  After running this screen on May 21, 2013, before the markets' open, I discovered the following eight stocks: Sunoco Logistics Partners LP (SXL), Leggett & Platt Inc (LEG), Copa Holdings SA (CPA), RPC Inc. (RES), Tupperware Brands Corp. (TUP), Herbalife Ltd. (HLF), John Wiley & Sons Inc. (JW.A) and C.H. Robinson Worldwide Inc. (CHRW).

• [By Michael J. Carr]

  Copa Holdings (NYSE: CPA) is also undervalued with a PEG ratio of 0.53. Copa Holdings provides airline passenger and cargo services within Colombia and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala and Costa Rica.

• [By Will Ashworth]

  I don�� know what�� going to happen in six months, let alone 20 years. However, I do know that OLED plays in a very exciting space, and Discovery Capital still seems to agree. Financially, OLED stock is solid, and if things go the company’s way in the coming years, it should get big in a hurry.

  Best Stocks #3 (Midcap): Copa Holdings (CPA)
  

  I�� a big believer in Latin America. While it has its troubles like every other emerging market, I continue to view its growing middle class with envy. While our middle class is being hallowed out, Latin America�� is growing exponentially. The U.S. was never more secure economically than when its middle class was growing, so history has demonstrated what this can do for a country.

• [By Jayson Derrick]

  Analysts at JPMorgan maintained an Overweight rating on Copa Holdings (NYSE: CPA) with a price target raised to $168 from a previous $163. Shares lost 0.25 percent, closing at $125.38.

Top Airline Stocks To Own For 2014: ANA Holdings Inc (ALNPF)

ANA HOLDINGS INC., formerly All Nippon Airways Co., Ltd., is a Japan-based airline holding company. Its Air Transportation segment is engaged in the air transportation business, the provision of various services at airports, the provision of reservation services via telephone, the freight express business, and the maintenance of aircrafts in domestic and overseas markets. The Traveling segment plans and sells tour packages under the brand names ANA Hello Tour and ANA Sky Holiday, it also offers services to travelers at arrival areas and sells travel products and air tickets. The Others segment involves in the information communication, trading and merchandise business, building management, logistics and airplane fixture repair business, and hotel operation. On March 4 and March 5, 2013, it fully acquired all shares of one and two consolidated subsidiaries through stock swap, respectively, made them become wholly-owned subsidiaries. Advisors' Opinion:

• [By Daniel Inman]

  In Tokyo, ANA Holdings (JP:9202) � (ALNPF) �declined 4.7% after the airline lowered its 2013 fiscal-year net profit forecast by 65% on higher fuel costs and slow service expansion because of delays in Boeing (BA) �787 Dreamliner deliveries.

Top Airline Stocks To Own For 2014: US Airways Group Inc (LCC)

US Airways Group, Inc. (US Airways Group) is a holding company whose primary business activity is the operation of a network air carrier through its wholly owned subsidiaries, US Airways, Piedmont Airlines, Inc. (Piedmont), PSA Airlines, Inc. (PSA), Material Services Company, Inc. (MSC) and Airways Assurance Limited (AAL). MSC and AAL operate in support of the Company�� airline subsidiaries in areas, such as the procurement of aviation fuel and insurance. It has hubs in Charlotte, Philadelphia and Phoenix and a focus city in Washington, D.C. at Ronald Reagan Washington National Airport (Washington National). During the year ended December 31, 2011, it offered scheduled passenger service on more than 3,100 flights daily to more than 200 communities in the United States, Canada, Mexico, Europe, the Middle East, the Caribbean, and Central and South America. It also has an East Coast route network, including the US Airways Shuttle service.

The Company had approximately 53 million passengers boarding its mainline flights in 2011. During 2011, the Company�� mainline operation provided scheduled service or seasonal service at 133 airports, while the US Airways Express network served 156 airports in the United States, Canada and Mexico, including 78 airports also served by its mainline operation. US Airways Express air carriers had approximately 28 million passengers boarding their planes in 2011. As of December 31, 2011, the Company operated 340 mainline jets and was supported by its regional airline subsidiaries and affiliates operating as US Airways Express under capacity purchase agreements, which operated 233 regional jets and 50 turboprops. The Company�� prorate carriers operated seven turboprops and seven regional jets at December 31, 2011.

In May 2011, US Airways Group and US Airways entered into an Amended and Restated Mutual Asset Purchase and Sale Agreement (the Mutual APA) with Delta Air Lines, Inc. (Delta). Pursuant to the Mutual APA, Delta agreed to acquire 132 slot pa! irs at LaGuardia from US Airways and US Airways agreed to acquire from Delta 42 slot pairs at Washington National and the rights to operate additional daily service to Sao Paulo, Brazil. On December 13, 2011, the transaction contemplated by the Mutual APA closed and ownership of the respective slots was transferred between the airlines. During 2011, the US Airways Express network served 156 airports in the continental United States, Canada and Mexico, including 78 airports also served by its mainline operation. During 2011, approximately 28 million passengers boarded US Airways Express air carriers��planes, approximately 44% of whom connected to or from its mainline flights.

The Company competes with Southwest, JetBlue, Allegiant, Frontier, Virgin America and Spirit.

Advisors' Opinion:

• [By Paul Ausick]

  Stocks on the Move: Vanda Pharmaceuticals Inc. (NASDAQ: VNDA) is up 95.8% at $13.29 on FDA recommendation for approval of its sleep drug for the blind. Sarepta Therapeutics Inc. (NASDAQ: SRPT) is down 64.3% at $13.05 following an FDA rejection of the company�� bid to fast-track muscular dystrophy drug. U.S. Airways Group Inc. (NYSE: LCC) is up 1.1% at $23.53 after reaching an agreement with the Department of Justice that will let the company go ahead with its American Airlines merger.

• [By Reuters]

  Matt York/AP The U.S. Department of Justice, which is fighting a proposed merger of US Airways Group and American Airlines parent AMR Corp., asked a judge Tuesday to postpone a trial in the case, saying the federal government shutdown would prevent its staff from working. But a lawyer for the airlines said he expected the trial to determine if the government can stop the merger of US Airways and American Airlines to begin as scheduled in late November. "From what the judge said in there, and I think everybody heard, we're going to trial on Nov. 25," Richard Parker said after a pretrial hearing. "We are planning on a Nov. 25 trial date." Judge Colleen Kollar-Kotelly didn't mention a potential stay during the pretrial hearing Tuesday. Shares of US Airways (LCC) were up 3.5 percent at $19.63 in midday trading Tuesday, while AMR (AAMRQ) rose 9.5 percent to $4.50. The Justice Department had asked for the stay because of a government-wide shutdown that started Tuesday. "This is creating difficulties for the Department to perform the functions necessary to support its litigation efforts," the department said in a court filing. The Justice Department and several states sued Aug. 13 to stop the merger, saying the deal to create the world's biggest carrier would lead to higher fares and stifle competition. Parker said a settlement resolving the fight was still possible. "We are interested in a reasonable settlement in this case," he said. Any settlement would mean asset sales, which in turn would require approval from the judge overseeing American's emergence from bankruptcy. The airlines have defended the deal in court filings, saying it would create $500 million in savings to consumers annually by creating a stronger competitor to Delta Air Lines Inc and United Continental Holdings Inc. But the Justice Department has said the merger would be bad for consumers. Its complaint focused on Reagan National Airport, outside Washington, where the two carriers contr

• [By Dan Caplinger]

  In addition, failing private companies have often relied on the federal Pension Benefits Guaranty Corporation to step in and protect their workers. In the past, US Airways (NYSE: LCC  ) and United Airlines, now merged into United Continental (NYSE: UAL  ) , have seen the PBGC take over certain pension-plan obligations to provide benefits to their workers as part of the airlines' respective bankruptcy proceedings. Under the PBGC, certain former workers whose benefits fall above a maximum benefit level have seen their payments cut, but many have gotten full restoration of their pensions.

Top Airline Stocks To Own 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]

  August was the third straight month of underwhelming PRASM results from Delta Air Lines. Perhaps not coincidentally Alaska Air and JetBlue (JBLU) have been underperforming industry PRASM lately as well, two airlines defending themselves against Delta Air Lines. To be sure, Delta Air Lines��PRASM is still growing faster than its CASM, which means margins are expanding y/y, but the rate of margin change is likely to be ��ess good��relative to United Continental (UAL) and American Airlines (AAL) due to Delta Air Lines’ capacity choices. We like Delta Air Lines, just not as much as most other Outperform-rated airlines.

Top Airline Stocks To Own For 2014: Gol Linhas Aereas Inteligentes SA (GOL)

Gol Linhas Aereas Inteligentes S.A. (GoL) is a low-cost, low-fare airline in the world providing service on routes connecting all of Brazil�� cities and from Brazil to cities in South America and select touristic destinations in the Caribbean. As of March 31, 2010, GoL offered approximately 800 daily flights per day to 61 destinations connecting cities in Brazil, as well as destinations in Argentina, Bolivia, Curacao, Aruba, Chile, Colombia, Paraguay, Uruguay and Venezuela. GoL is a holding company, which owns directly or indirectly shares of five subsidiaries: VRG Linhas Aereas S.A. (VRG) and four offshore finance subsidiaries, Gol Finance Cayman and GAC Inc., which owns Sky Finance and Sky Finance II. VRG is the Company�� operating subsidiary, under which it conducts its business. Gol Finance, GAC Inc., Sky Finance and Sky Finance II are off-shore companies established for the purpose of facilitating cross-border general and aircraft financing transactions.

GoL�� passenger transportation services include ticketless travel; online sales, check-in, seat assignment and flight change and cancellation services; online flight status service; Web-enabled cell phone ticket sales and check-in; self check-in at kiosks at designated airports; designated female lavatories; friendly and efficient in-flight service; modern aircraft interiors; quick turnaround times at airport gates; free or discounted shuttle services between airports and drop-off zones on certain routes; buy on board services on certain flights; mobile check-in and boarding pass (100% paperless boarding), and iPhone application for check-in, electronic boarding pass and Smiles account management. On December 31, 2009, the Company had an operational fleet of 108 operational aircraft and a total fleet of 127. As of March 31, 2010, one of its Boeing 767 aircrafts was subleased to a charter company in the United States, one is under final formalization process for a wet lease to a Brazilian company for flights connecting Brazil to! Angola and three are under final stages of negotiation to be chartered to operate intercontinental flights. At December 31, 2009, GoL had a total of 127 aircraft, 94 of which were under operating leases and 33 were under finance leases.

The Company competes with TAM Linhas Aereas S.A.

Advisors' Opinion:

• [By Roberto Pedone]

  One airline player that's starting to trend within range of triggering a near-term breakout trade is Gol Linhas Aereas Inteligentes (GOL), through its subsidiaries, engages in the air transportation of passengers, cargo, and mailbags in Latin America. This stock has been hammered by the bears so far in 2013, with shares off by 42%.

  If you look at the chart for Gol Linhas Aereas Inteligentes, you'll notice that this stock has been uptrending strong for the last two months, with shares moving higher from its low of $2.74 to its recent high of $3.83 a share. During that uptrend, shares of GOL have been mostly making higher lows and higher highs, which is bullish technical price action. Shares of GOL just recently formed a double bottom above its 50-day moving average at $3.57 to $3.55 a share. Shares of GOL are now starting to spike higher above those support levels and move within range of triggering a near-term breakout trade.

  Traders should now look for long-biased trades in GOL if it manages to break out above some near-term overhead resistance levels at $3.83 to $4.14 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 2.19 million shares. If that breakout triggers soon, then GOL will set up to re-test or possibly take out its next major overhead resistance level at its 200-day moving average of $5.30 a share to $6 a share.

  Traders can look to buy GOL off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $3.46 a share. One can also buy GOL off strength once it takes out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Top Airline Stocks To Own For 2014: Grupo Aeromexico SAB de CV (AEROMEX*)

Grupo Aeromexico SAB de CV is a Mexican holding company primarily engaged in the provision of passenger and cargo air transport services. It offers destinations in Mexico, the United States, Europe, Central and South America, Asia and Canada. It operates a fleet of over 110 aircrafts. The Company is primarily engaged in the passenger transportation segment, comprising regional, domestic and international routes, and package holidays; as well as in cargo transportation segment, handled mainly by its subsidiary Aeromexico Cargo. By its subsidiaries the Company is also engaged in real estate sector and in providing services to the aviation companies, including personnel training, management, and aircraft maintenance and modification. Its subsidiaries include Aerovias de Mexico SA de CV, Premier Loyalty & Marketing SAPI de CV, and Inmobiliaria Avenida Fuerza Aerea Mexicana 416 SA de CV, among others. In addition, it is a member of the SkyTeam airline alliance. Advisors' Opinion:

• [By Jonathan Levin]

  Volaris became Mexico�� second publicly traded carrier, after larger competitor Grupo Aeromexico SAB (AEROMEX*) sold stock in 2011. Airlines in Mexico have expanded into a void left when Cia. Mexicana de Aviacion, then largest based on passenger traffic, sought protection from creditors and ceased operations in 2010.