Top 10 Airline Stocks To Watch Right Now

Last year marked a major event in commercial aviation history, as American Airlines Group (NASDAQ: AAL  ) was formed by the merger of US Airways and AMR. There is clearly a lot of potential at the new airline, but what is attracting a lot of attention lately is the airline's $10 billion in cash.

Using cash
Airlines are in a naturally volatile business, and any use of cash has to take into account the massive capital needs in the industry as well as the cyclical nature of earnings. That said, finding the right balance of saving for a rainy day and generating shareholder returns is the most beneficial strategy for airline shareholders. With $10 billion in cash, American Airlines Group will need to work on striking this balance.

Fleet modernization
Part of the rebuilding of American Airlines has been a massive fleet modernization initiative. With more than $40 billion in aircraft on order, American has committed a large amount of its capital to the latest aircraft technology. American will probably use a good portion of its cash for these new aircraft to prevent it from having to issue more debt than necessary.

Top 5 Internet Companies To Buy Right Now: Southwest Airlines Co (LUV)

Southwest Airlines Co., incorporated on March 9, 1967, operates Southwest Airlines, a passenger airline, which provides scheduled air transportation in the United States. As of December 31, 2011, the Company was serving 72 cities in 37 states throughout the United States. During the year ended December 31, 2011, the Company added addition services in two new states and three new cities: Charleston, South Carolina; Greenville-Spartanburg, South Carolina; and Newark, New Jersey. Southwest provides point-to-point. On May 2, 2011, the Company acquired AirTran Holdings, Inc. (AirTran).

AirTran�� route system provides hub-and-spoke, rather than point-to-point, service, with approximately half of AirTran�� flights originating or terminating at its hub in Atlanta, Georgia. AirTran also serves a range of markets with non-stop service from bases of operation in Baltimore, Maryland; Milwaukee, Wisconsin; and Orlando, Florida. As of December 31, 2011, AirTran was serving 68 United States and near-international destinations, including San Juan, Puerto Rico; Cancun, Mexico; Montego Bay, Jamaica; Nassau, The Bahamas; Oranjestad, Aruba; Punta Cana, Dominican Republic, and Bermuda. As of January 31, 2012, AirTran served 65 destinations. During 2011, approximately 71% of Southwest�� customers flew non-stop, and Southwest�� average aircraft trip stage length was 664 miles with an average duration of approximately 1.8 hours.

As of December 31, 2011, Southwest offered 25 weekday roundtrips from Dallas Love Field to Houston Hobby, 13 weekday roundtrips from Phoenix to Las Vegas, 13 weekday roundtrips from Burbank to Oakland, and 12 weekday roundtrips from Los Angeles International to Oakland. Southwest offers connecting service opportunities from over 60 Southwest cities to different Volaris airports in Mexico including Aguascalientes, Guadalajara, Mexico City (MEX), Mexico City-Toluca (TLC), Morelia, and Zacatecas. The Company�� International Connect portal conducts two separate transac! tions: one with Southwest�� reservation system and one with Volaris�� reservation system.

Southwest bundles fares into three categories: Wanna Get Away, Anytime, and Business Select. Wanna Get Away fares are lowest fares. Business Select fares are refundable and changeable, and funds may be applied toward future travel on Southwest. Business Select fares also include additional perks, such as priority boarding, a frequent flyer point multiplier, priority security and ticket counter access in select airports, and one complimentary adult beverage coupon for the day of travel. The Company�� Internet Website, southwest.com, is the avenue for Southwest Customers to purchase tickets online. During 2011, southwest.com accounted for approximately 78% of all Southwest bookings. During 2011, approximately 84% of Southwest�� Passenger revenues came through its Website, including revenues from SWABIZ, the Company�� business travel reservation Web page.

Advisors' Opinion:

• [By Alexander MacLennan]

  Single plane
  The Boeing (NYSE: BA  ) 737 is a highly popular plane and has earned the title of the best-selling commercial airliner in history. Among the buyers of the Boeing 737 are Southwest Airlines (NYSE: LUV  ) and WestJet Airlines (TSX: WJA  ) , and for both airlines, the 737 makes up the vast majority of their fleets.

Top 10 Airline Stocks To Watch Right Now: Qantas Airways Ltd (QUBSF)

Qantas Airways Limited is engaged in the operation of international and domestic air transportation services, the provision of freight services and the operation of a Frequent Flyer loyalty program. The Company�� main business is the transportation of customers using two complementary airline brands: Qantas and Jetstar. It also operates subsidiary businesses, including other airlines, and businesses in specialist markets, such as Q Catering. The Company operates in four segments: Qantas Domestic, Qantas International, Qantas Loyalty and Qantas Freight. Qantas Domestic includes Australian domestic passenger flying business of Qantas Brands. Qantas International includes the International passenger flying business of Qantas Brands. Qantas Loyalty Operates the Qantas customer loyalty program. In April 2014, Qantas Airways Ltd announced that Westpac Banking Corporation and its associated companies ceased to be a substantial share holder of the Company. Advisors' Opinion:

• [By WWW.MARKETWATCH.COM]

  LOS ANGELES (MarketWatch) -- Australia shares nudged lower early Friday, with the S&P/ASX 200 (AU:XJO) down 0.2% to erase the previous session's 0.2% gain, dragged by losses for European and U.S. equities on the back of a Portuguese financial crisis. Financials fell (Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) and National Australia Bank Ltd. (AU:NAB) (NAUBF) each down 0.3%, Commonwealth Bank of Australia (AU:CBA) (CBAUF) down 0.4%, and Macquarie Group Ltd. (AU:MQG) (MCQEF) down 0.7%), and the top miners fared especially poorly (Rio Tinto Ltd. (AU:RIO) (RIO) down 1.2%, Oz Minerals Ltd. (AU:OZL) (OZMLF) down 1.1%, though BHP Billiton Ltd. (AU:BHP) (BHP) off just 0.1%). And while Atlas Iron Ltd. (AU:AGO) beat its production guidance, and Fortescue Metals Group Ltd. (AU:FMG) (FSUMF) missed its production guidance, both saw losses, with Atlas stock off 2.9% and Fortescue trading 1.6% lower. Among the gainers, Scentre Group

• [By MARKETWATCH]

  LOS ANGELES (MarketWatch) -- Stocks in Australia fell early Thursday, pressured by a drop in the country's currency to a three-month low below 90 U.S. cents, and by losses on Wall Street overnight on concerns about tapering of monetary stimulus. The S&P/ASX 200 (AU:XJO) fell 28 points, or 0.5%, to 5,246, led by losses in the heavily weighted financial sector. There, shares of Westpac Banking Corp. (AU:WBC) (WEBNF) lost 1.2%, National Australia Bank Ltd. (AU:NAB) (NAUBF) declined 1%, and Australia & New Zealand Banking Group (AU:ANZ) (ANEWF) shed 0.7%. Shares of Qantas Airways Ltd. (AU:QAN) (QUBSF) sank 14% after the company warned it expects to post an underlying loss before tax of $250 million to $300 million for the six months ending Dec. 31. The carrier said trading conditions saw a marked deterioration, particularly in November with both passenger loads and yields "below the already negative trends for the year to date."

Top 10 Airline Stocks To Watch Right Now: Indonesia Transport & Infrastructure Tbk PT (IATA)

PT Indonesia Transport & Infrastructure Tbk, formerly PT Indonesia Air Transport Tbk, is an Indonesia-based air transport service provider. The Company provides air transportation, hiring and/or leasing aircrafts, repairs and maintenance of aircrafts and trading of aviation technical equipment and related spare parts. It also provides medical evacuation services, tourism and scheduled flight services to several routes in central and eastern Indonesia. The Company operates various types of fixed wing aircrafts and helicopters, such as EC 155 B1, AS 365 Dauphin N2 twin turbine helicopter, Beechcraft 1900D, ATR 42-300, ATR 42-500 and Fokker 50. Advisors' Opinion:

• [By Shereen El Gazzar]

  The forecast, from the International Air Transport Association (IATA), sees the Middle East and the Asia-Pacific region with the strongest international passenger growth, with a compound average growth rate of 6.3% and 5.7% respectively.

Top 10 Airline Stocks To Watch Right Now: Latam Airlines Group SA (LFL)

LAN Airlines S.A. (LAN), incorporated in 1983, is the international and domestic passenger airline in Latin America and the cargo operator in the region. As of February 9, 2012, LAN and its affiliates provided domestic and international passenger services in Chile, Peru, Ecuador, Argentina and Colombia and cargo operations through the use of belly space on its passenger flights and cargo freighter aircraft through its cargo airlines in Chile, Brazil, Colombia and Mexico. LAN and its affiliates offered passenger flights to 15 destinations in Chile, 59 destinations in other South American countries, 15 destinations in other Latin American countries and the Caribbean, five destinations in the United States, two destinations in Europe and four destinations in the South Pacific and, through various codeshare agreements, service to 25 additional destinations in North America, 16 additional destinations in Europe, 27 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia, as of February 9, 2012. LAN and its affiliates provide cargo service to all of their passenger destinations and to 20 additional destinations served only by freighter aircraft. LAN also offers other services, such as ground handling, courier, logistics and maintenance. LAN and its affiliates operated a fleet, with 135 passenger aircraft and 14 cargo aircraft as of December 31, 2011. On February 15, 2011, Lan Pax Group S.A., subsidiary of Lan Airlines S.A. acquired 100% of Colombian society AEROASIS S.A.

LAN is primarily involved in the transportation of passengers and cargo. Its operations are carried out principally by Lan Airlines and also by a number of different subsidiaries. As of February 28, 2011, in the passenger business the Company operated through six main airlines: Lan Airlines, Transporte Aereo S.A. (which does business under the name Lan Express), Lan Peru S.A. (Lan Peru), Aerolane Lineas Aereas Nacionales del Ecuador S.A. (Lan Ecuador), Lan Argentina S.A. (Lan ! Argentina, previously Aero 2000 S.A.) and the Aerovias de Integracion Regional, Aires S.A. (Aires). As of February 28, 2011, the Company held a 99.9% interest in Lan Express through direct and indirect interests, a 70.0% interest in Lan Peru through direct and indirect interests, a 71.9% indirect interest in Lan Ecuador, a 99.0% indirect interest in Lan Argentina and a 94.99% indirect interest in Aires (a Colombian entity which was acquired on November 26, 2010). Its cargo operations are carried out by a number of companies, including Lan Airlines and Lan Cargo. As of February 28, 2011, the Company held a 69.2% interest in Aero Transportes Mas de Carga S.A. de C.V. (MasAir), through direct and indirect participations, a 73.3% interest in ABSA through direct and indirect participations, and a 90.0% interest in LANCO through direct and indirect participations. In the cargo business, the Company markets itself primarily under the Lan Cargo brand. In addition to its air transportation activities, the Company provides a series of ancillary services. It offers handling services, courier services and logistics, small package and express door-to-door services through Lan Airlines and various subsidiaries.

Passenger Operations

As of February 28, 2011, the Company operated passenger airlines in Chile, Peru, Ecuador, Argentina and Colombia. As of February 28, 2011, our passenger operations were performed through airlines in Chile, Peru, Ecuador, Argentina and Colombia where we operate both domestic and international services. As of February 28, 2011, the Company�� network consisted of 15 destinations in Chile, 14 destinations in Peru, four destinations in Ecuador, 14 destinations in Argentina, 24 destinations in Colombia, 14 destinations in other Latin American countries and the Caribbean, five destinations in the United States, one destination in Canada, three destinations in Europe and four destinations in the South Pacific. Within Latin America, it has routes to and from Argentina, B! olivia, B! razil, Chile, Colombia, Cuba, the Dominican Republic, Ecuador, Mexico, Peru, Uruguay and Venezuela. The Company also flies to a variety of international destinations outside Latin America, including Auckland, Fort Lauderdale, Frankfurt, Los Angeles, Madrid, Miami, Mount Pleasant (Falkland Islands), New York, Toronto, Papeete (Tahiti), Paris, San Francisco, and Sydney. In addition, as of February 28, 2011, through its various code-share agreements, the Company offered service to 25 additional destinations in North America, 16 additional destinations in Europe, 25 additional destinations in Latin America and the Caribbean (including Mexico), and two destinations in Asia. As of February 28, 2011, the Company operated scheduled international services from Chile, Peru, Ecuador and Argentina through Lan Airlines; Lan Express in Chile; Lan Peru in Peru; Lan Ecuador in Ecuador; Lan Argentina in Argentina and Aires in Colombia. Its international network combines the Company�� Chilean, Peruvian, Ecuadorian, Argentinean and Colombian affiliates. It provides long-haul services out of its four main hubs in Santiago, Lima, Guayaquil and Buenos Aires. It also provides regional services from Chile, Peru, Ecuador and Argentina.

Cargo Operations

The Company�� cargo business operates on the same network used by the passenger airlines business, which is supplemented by freighter-only operations. The Company carries cargo for a variety of customers, including other international air carriers, freight-forwarding companies, export oriented companies and individual consumers. As of February 28, 2011, the Company operated a fleet of 140 aircraft, comprised of 126 passenger aircraft and 14 cargo aircraft.

The Company competes with UPS, FedEx, Centurion, Transportes Aereos Mercantiles Panamericanos S.A., Polar Air, Cargolux, Lufthansa Cargo, Martinair and Air France-KLM.

Advisors' Opinion:

• [By Monica Gerson]

  LATAM Airlines Group SA (NYSE: LFL) is expected to post its Q1 earnings at $0.20 per share on revenue of $3.42 billion.

  Gladstone Investment (NASDAQ: GAIN) is projected to post its Q4 earnings at $0.17 per share on revenue of $8.90 million.

• [By Laura Brodbeck]

  Notable earnings releases expected on Monday include:

  LAN Chile S.A. (NYSE: LFL) is expected to report fourth quarter EPS of $0.24 on revenue of $3.50 billion, compared to last year�� EPS of $0.02 on revenue of $3.48 billion. JA Solar Holdings, Co. Ltd (NASDAQ: JASO) is expected to report EPS of $0.03 on revenue of $291.75 million, compared to last year�� loss of $2.65 per share on revenue of $268.09 million. Sterling Construction Company, Inc�(NASDAQ: STRL) is expected to report a fourth quarter loss of $1.47 per share on revenue of $153.07 million, compared to last year�� EPS of $0.18 on revenue of $158.09 million.

  Economics

Top 10 Airline Stocks To Watch Right Now: Air France KLM SA (AFLYY.PK)

Air France-KLM SA (Air France-KLM), incorporated on April 23, 1947, is an airline engaged in the business of passenger transportation. It has four segments: Passenger, Cargo, Maintenance and Other. The Company�� primary business is to hold direct or indirect interests in the capital of air transport companies and, more generally, in any companies in France or elsewhere whose purpose is related to the air transport business. Air France-KLM activities also include cargo, aeronautics maintenance and other air-transport related activities including, principally, catering and charter services. At March 31, 2011, the Air France-KLM group fleet consists of 609 aircraft, of which 593 were operational. At March 31, 2011, 274 aircraft were fully owned (45% of the fleet), 117 aircraft were under finance lease representing 19% of the fleet and 218 under operating lease representing 36% of the fleet.

Passenger

Passenger operating revenues primarily come from passenger transportation services on scheduled flights with the Company�� airline code, including flights operated by other airlines under code-sharing agreements. They also include commissions paid by SkyTeam alliance partners, code-sharing revenues, revenues from excess baggage and airport services supplied by the Company�� to third party airlines and services linked to information technology (IT) systems.

Cargo

Cargo operating revenues come from freight transport on flights under the companies��codes, including flights operated by other partner airlines under code-sharing agreements. Other cargo revenues are derived principally from sales of cargo capacity to third parties. During the fiscal year ended March 31, 2011, the Company transported more than 1.5 million tons of cargo, of which 66% in the bellies of passenger aircraft and 33% in the cargo fleet, to a network of approximately 254 destinations in approximately 111 countries. Air France-KLM Cargo has a product range organized around four prod! uct families, Equation, Cohesion, Variation and Dimension.

Maintenance

Maintenance operating revenues are generated through maintenance services provided to other airlines and customers globally. The Company�� two engine shops are located in Amsterdam and Paris. CFM56 engine shops support the fleet of CFM56-5 power plants in the world, with nearly 400 engines operated by numerous airlines. CF6-80E1 provides full-service maintenance. KLM Engineering & Maintenance (AFI KLM E&M) provides an alternative to the manufacturer�� services in terms of overhaul and services on this engine with its offering supported by technological infrastructure.

Other

The revenues from this segment come primarily from catering supplied by the Company to third-party airlines and to charter flights operated primarily by Transavia. The catering business is regrouped around Servair, an Air France subsidiary which generates more than 90% of the revenues of this activity, and KLM Catering Services, a subsidiary of KLM.

Advisors' Opinion:

• [By El Torero]

  The airline will undoubtedly pounce on the likely failings of rival companies, though this is also an area where easyJet will be eager to move in. Spanair is gone as is Malev Zrt, two former Ryanair rivals. Air France-KLM (AFLYY.PK) and Iberia are in trouble, among other European airlines. Ryanair will take advantage of such weaknesses in its aim of becoming Europe's out-and-out dominant short-haul carrier. As other airlines cut routes, airports are now looking to Ryanair to take up the newly available airport space. As a result of this, with "opportunities opening up in Germany, Scandinavia and Central Europe" in particular, Ryanair's deputy chief executive, Howard Millar sees the Irish company increase its market share from 15 percent to 20 percent before the end of the decade.

Top 10 Airline Stocks To Watch Right Now: Controladora Vuela Compania de Aviacion SAB de CV (VLRS)

Controladora Vuela Compania de Aviacion SAB de CV (Volaris Aviation Holding Company) is a Mexico-based company principally engaged in the airline passenger transportation industry. The Company is a law-cost carrier airline. Controladora Vuela Compania de Aviacion SAB de CV offers direct, point-to-point flights. The Company serves through secondary, lower cost airports and provides a single class of service. The Company utilizes such aircraft as the Airbus A319 and A320 families, among others. The Company has such subsidiaries as Comercializadora Volaris SA de CV, Servicios Corporativos Volaris SA de CV, Concesionaria Vuela Compania de Aviacion SAPI de CV, Deutsche Bank Mexico SA Trust 1484, among others. Advisors' Opinion:

• [By John Udovich]

  When most American investors think of discount airline stocks, they probably think of relatively large capped Southwest Airlines Co (NYSE: LUV)�or sort of small cap�JetBlue Airways Corporation (NASDAQ: JBLU) rather than�small cap Controladora Vuela Co Avcn SA CV (NYSE: VLRS) which owns Volaris���a discount airline serving the�Mexican market. However, any investor who has read Benjamin Graham�� Intelligent Investor might want to remember his sage advice about avoiding airline stocks���mainly because airlines were such a new and unproven sector that had yet to make money. But could Controladora Vuela Co Avcn SA CV actually be an airline stock worth owning?

Top 10 Airline Stocks To Watch Right Now: 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 Adam Levine-Weinberg]

  The airline sector has really taken off over the last six months, with nearly every major name posting big gains for investors. Of the four largest publicly traded airlines, US Airways (NYSE: LCC  ) is a laggard even though shares have risen more than 40% since Thanksgiving; by contrast, Delta Air Lines (NYSE: DAL  ) shares have nearly doubled. Last fall, any airline stock was a good stock to buy due to the sector's remarkably depressed valuation.

• [By Tom Aspray]

  Though my focus is on the technical, I don’t discount the fundamentals, and therefore, one predominantly fundamental site is included in my list. The initial slides were generated on Tuesday afternoon after the announcement was made that US Airways Group, Inc., (LCC) and American Airlines (AAMRQ) reached a settlement allowing their $17 billion dollar merger to go through.

• [By Adam Levine-Weinberg]

  Warren Buffett is known for having a long-held aversion to airline stocks. While he owned shares of what is now US Airways (NYSE: LCC  ) back in the 1990s, Buffett famously blamed this investment on "temporary insanity." Buffett has on numerous occasions stated that airlines have all the hallmarks of a terrible business: "one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money."

• [By Tim Beyers]

  After combining satisfaction scores tracked by the American Customer Satisfaction Index, or ACSI, with each carrier's year-to-date load factor, I think those flying Southwest Airlines (NYSE: LUV  ) are most likely to get home without incident. US Airways (NYSE: LCC  ) travelers might not be so lucky. Here's a closer look at the entire field.