Delta Air Lines, Inc. (DAL), US Airways Group, Inc. (LCC), Southwest Airlines Co. (LUV): 3 Hot Airline Stocks

The foolish note

The three airlines experienced strong demand in May compared to a year ago. Delta Air Lines, Inc. (NYSE:DAL) should increase its revenue in the near future, as the airline has inaugurated the new international terminal in JFK International Airport. Further, the company is showing signs of growth by inaugurating new routes, which will expand its presence world-wide. US Airways Group, Inc. (NYSE:LCC) also has huge potential for growth. The merger with American Airlines will be beneficial since its international presence will grow exponentially, especially in Atlantic flights. Also, the company is reducing costs of operation by replacing its aircraft with more fuel-efficient Airbus models. Surely, its profit margins will increase. Finally, Southwest Airlines Co. (NYSE:LUV) has expanded substantially. The company has inaugurated two new routes to Las Vegas, and it has partnered with MGM so customers will benefit from flying with Southwest Airlines Co. (NYSE:LUV) and staying in one of the twelve participant hotels. Also, the company has announced another share repurchase program to bring capital appreciation to investors. For these reasons, I highly recommend owning these companies as a basket in any growth-oriented portfolio.

Robinson Roacho has no position in any stocks mentioned. The Motley Fool recommends Southwest Airlines.

The article 3 Hot Airline Stocks originally appeared on Fool.com and is written by Robinson Roacho.

Robinson is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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