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.