9 Airline Stocks to Sell Amid Stormy Skies

It’s no secret that the airline industry continues to face headwinds. Tight regulations weigh on productivity and costs, margins are razor thin and consumer spending remains weak, making travel light among non-business travelers. Throw in the prospect of higher crude oil prices and you’ve got an ugly sector outlook.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. Today, I’m ranking nine airline stocks that should not be in any healthy portfolio.

Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

LAN Airlines (NYSE:LFL) is a commercial passenger airline and air cargo operator based in Chile. LAN has underperformed compared to the broader market in 2011, down 29%, compared to a 3% drop for the Dow Jones.

Ryanair Holdings (NASDAQ:RYAAY) is known for providing short, point-to-point flights between Ireland, the United Kingdom, continental Europe and Morocco. A year-to-date drop of more than 15% for RYAAY has been a dismal reminder of the difficulty airlines are facing.

Delta Air Lines (NYSE:DAL) is a familiar commercial airline for those who fly in the United States. DAL has not been saved by a strong brand name however, losing 37% since Jan. 3.

Southwest Airlines Co. (NYSE:LUV) is another popular American airline, known for providing discount flights to travelers. A year-to-date drop of 34% has left shareholders unhappy, despite the airline’s claim to never charge for the first two checked bags.

China Eastern Airlines (NYSE:CEA) is a Chinese airline that sends passengers to 182 cities internationally in 30 different countries. CEA has gone the same route as many other airline stocks, down 31% year to date.

JetBlue (NASDAQ:JBLU) is known primarily as a point-to-point airline in the United States. JBLU is another underperformer on this list, having dropped 35% since the beginning of 2011.

AMR Corp. (NYSE:AMR) is a subsidiary of American Airlines and provides scheduled jet services to 160 destinations. AMR has been the worst-performing stock among these nine, down 59% year to date.

US Airways (NYSE:LCC) is another household name in the airline industry that has had a forgettable 2011. A loss of 39% year to date has almost ensured a disappointing finish for LCC stock in 2011.

SkyWest (NASDAQ:SKYW) is the final commercial airline on the list, and it offers flights to the United States, Canada, Mexico and the Caribbean. SKYW stock has posted a loss of 23% for the first 10 months of 2011.

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

Article printed from InvestorPlace Media, https://investorplace.com/2011/09/9-airline-stocks-to-sell-lfl-ryaay-dal-luv-cea-jblu-amr-lcc-skyw/.

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