Delta has opened the first technical operations line maintenance in Sao Paulo. The exposure of the airline to the Brazilian market may bring higher revenues in the interim. The company’s stock definitely offers an interesting investment prospectus.
A look at US Airways Group Inc (NYSE:LCC)
US Airways Group Inc (NYSE:LCC) may be another excellent choice to gain exposure to the industry. The company may be regarded as a value play, but there is also potential for growth.
Its shareholders have authorized an American Airlines merger, and the carrier has already elected the Board of Directors for the new American Airlines. This merger positions US Airways Group Inc (NYSE:LCC) as the largest international airline in the world, which is certainly nothing to sneeze at.
There is a general trend for airlines to expand into Latin America, and U.S. Airways is no exception. The carrier was tentatively awarded permanent authority to operate the Charlotte – Sao Paulo route. As with Delta, this airline is seeing great opportunities in the Brazilian markets.
U.S. Airways is in a good position to bring value to its investors. The merger with American Airlines may bring higher revenues due to a higher international exposure. The carrier is also expanding with new routes to Brazil. As a result, U.S. Airways may be a good choice to enter the sector.
A regional airline with huge potential
The company is following in the footsteps of major airlines by inaugurating new routes to Latin America. In June, JetBlue Airways Corporation (NASDAQ:JBLU) started flying from Fort Lauderdale to San Jose, Costa Rica, and also from Fort Lauderdale to Medellin, Colombia. Investors should look for increasing revenues in the fourth quarter earnings report.
The carrier has strong passenger traffic. Its revenue passenger miles (RPM) rose by 7.8% in June to 3.13 billion. To meet an increasing demand, the carrier is adding available seat miles (ASM), meaning that it is increasing its revenue-generation ability. Its ASM increased by 8% to 3.6 billion while its load factor remained unchanged at 85.9%.
Overall, JetBlue Airways Corporation (NASDAQ:JBLU) offers an attractive opportunity for investment because the passenger demand is strong and it is creating new routes to Latin America. This could make it a solid holding in growth portfolios.
The foolish conclusion is…
The airline industry is booming, and several airlines have strong passenger traffic. Delta Air Lines, Inc. (NYSE:DAL), U.S. Airways and JetBlue Airways Corporation (NASDAQ:JBLU) are expanding substantially by opening new routes, particularly to Latin America. As a result, I would highly recommend having these stocks to profit from the airline industry.
Robinson Roacho has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Robinson is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Latin American Expansion Is Key for the Growth of These Airlines originally appeared on Fool.com is written by Robinson Roacho.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
