Tuesday, October 29, 2013

Airlines Generating Top Revenues from Fees: Top Airline Stocks

A fee for printing out your boarding pass? Gimme a break. But the airlines are happy about it, along with all the other fees they are charging, like seat upgrade fees and the ever-popular baggage fees. These fees generate what is called 'ancillary revenue' which may amount to $42.6 billion this year, according to a new study. This could be a huge 18% over last year.

So if the airlines are making money, how about investors? They can participate by choosing from over two dozen airline stocks, according to WallStreetNewsNetwork.com, and more than half a dozen of which pay dividends.

Delta Air Lines Inc. (DAL) just reported a great earnings increase of 30.8% on a 5.7% increase in revenues. The company is doing what it can to boost those revenues by adding additional New York Los Angeles flights with full flat-bed seats, along with flights to Seattle and San Francisco. The stock trades at 10.9 times trailing earnings and 8.8% times forward earnings, with a great price to earnings ratio of 0.39. It is even one of the dividend payers, generating a yield of 0.9%, based on an annualized payment of six cents per quarter.

Another dividend payer is Alaska Air Group, Inc. (ALK), which generates a yield of 1.1%. The stock trades at 10.6 times earnings, with a forward price to earnings ratio of 11.1, and a PEG ratio of 0.93. Earnings for the latest quarter skyrocketed 76.9% with sales spiking 22.4%.

Southwest Airlines (LUV) has a PE ratio of 20, and a forward PE of 14. The PEG is a very favorable 0.43, and the yield is 0.9%.

For a free list of over 25 airline stocks, which includes the PE ratio, the forward PE, the PEG, and the yield, go to WallStreetNewsNetwork.com.

Disclosure: Author didn't own any of the above at the time the article was written.

By Stockerblog.com

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