This airline is also gaining international exposure
Delta Air Lines, Inc. (NYSE:DAL) has inaugurated a $1.4 billion international terminal at the JFK International Airport. In addition, the carrier is penetrating the Brazilian market through a partnership with GOL Linhas Aereas to operate the route from Atlanta to Sao Paulo. However, I would also expect the carrier to pursue the induction of routes from JFK to Brazilian destinations.
Further, the company is remodeling its terminal three at the JFK International Airport to bring a better traveling experience to its customers. With terminals three and four, the company will expand operations between the JFK airport and international destinations.
Finally, the company has acquired 49% of the Virgin Atlantic Airways, which should expand its operations in the Atlantic region.
Overall, the company also observed stronger revenue passenger miles. Its RPMs increased by 1.5% to 16.7 billion. Also, the company is tackling stronger demand by the addition of available seat miles. Its ASM increased by 0.7%. Consequently, its load factor increased by 0.7%.
Overall, Delta Air Lines, Inc. (NYSE:DAL) is expanding through remodeling terminals three and four at JFK International Airport. Further, the company is meeting stronger demand by the addition of seat miles. Hence, the company is well-positioned for further growth.
The regional airline that is growing impressively
Spirit Airlines Incorporated (NASDAQ:SAVE) is also showing growth signals. The company has ordered 20 additional Airbus A321 aircraft to meet its increasing passenger traffic. These aircraft are in addition to the 96 aircraft not yet delivered under Spirit’s orders, but they will be delivered between 2015 and 2017.
Also, the carrier has opted to convert 10 A320s to A321s, aircraft that are scheduled to be delivered between 2017 and 2018. The company should cut its operation costs with the introduction of these more fuel-efficient aircraft.
In addition, the company is confident of its revenue-generation ability. The carrier recently opened new flight attendant positions. Two job fairs were hosted in Chicago in May.
Finally, Spirit Airlines Incorporated (NASDAQ:SAVE) posted an outstanding traffic report in May. Its RPM increased by 28% to 1.0 billion, and its ASM increased by 24% to 1.1 billion. Finally, its load factor increased to 86.9%.
In conclusion, Spirit Airlines Incorporated (NASDAQ:SAVE) has experienced a significant rise in passenger traffic, but the company is in the best position to provide the service with the inclusion of new aircraft. Hence, its revenue should continue to grow.
The Foolish conclusion
The airline industry has rebounded sharply by a stronger passenger traffic. These airlines should continue to provide investors with capital appreciation because they are implementing brilliant expansion strategies. Some of them have merged with other airlines, others have increased international and domestic exposure through the remodeling of terminals or the addition of new aircraft. Therefore, I would recommend buying these stocks as a basket to gain exposure to this glowing industry.
Robinson Roacho has no position in any stocks mentioned. The Motley Fool owns shares of SPIRIT AIRLINES INC. (NASDAQ:SAVE)
The article The Best Way to Invest in the Airline Industry originally appeared on Fool.com.
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