Top 11 Airlines, Airports & Air Services Stocks
Marvin ranks 11 airline and air-service companies by Overall score. SkyWest, Delta and Republic Airways lead, while JetBlue and Frontier score lowest. Scores compare each company with others in its industry.
This list covers 11 companies in the Airlines, Airports & Air Services industry, ordered by Marvin's Overall score, highest first. It includes large network airlines, regional carriers, low-cost carriers and one aircraft developer.
Airlines tend to have thin profit margins and often carry a lot of debt. The numbers behind each pick, such as operating margin, free cash flow margin and debt-to-equity, show how a company is doing on those points.
Marvin's scores only describe how a company compares with others in its industry today. They are not advice and do not predict future results. A figure marked missing means the data was not available.
The list
How Marvin ranked these stocks
Marvin included companies above about $300 million in size and ranked them by Marvin scores, which run on a scale from zero to one hundred. Each score is relative to the company's own industry, here Airlines, Airports & Air Services, and the highest Overall score comes first. A high score means a company looks strong compared with its industry peers, not necessarily compared with every stock in the market.
Companies above about $300 million in size, ranked by Marvin scores (0-100, relative to each company's own industry). The Airlines, Airports & Air Services industry, highest Overall score first.
The stocks, one by one
SkyWest, Inc. SKYW
SkyWest has the top Overall score at 93. Revenue grew 15.0% last fiscal year, with an operating margin of 14.0% and a free cash flow margin of 21.7%, which suggests solid growth and cash generation. Caution: debt-to-equity of 0.86 is still worth weighing.
Delta Air Lines, Inc. DAL
Delta Air Lines scores 87 overall. Revenue grew a modest 2.8%, operating margin is 7.4%, and return on equity is 14.6%, pointing to steady profitability. Debt-to-equity is 0.80. Caution: free cash flow margin is not available, so cash generation cannot be judged here.
Republic Airways Holdings Inc. RJET
Republic Airways has an Opportunity score of 94, its strongest mark, with revenue growth of 13.7% and an operating margin of 8.8%. Caution: free cash flow margin is -1.9%, meaning it spent more cash than it generated, and return on equity is only 5.0%.
United Airlines Holdings, Inc. UAL
United Airlines earns a Quality score of 80, helped by a return on equity of 20.9% and an operating margin of 7.7%. Revenue growth is modest at 3.5%. Caution: debt-to-equity of 1.89 is on the higher side, which adds financial risk.
Southwest Airlines Co. LUV
Southwest Airlines has an Overall score of 68 and a return on equity of 11.8%, with debt-to-equity of 0.67. Growth is slow at 2.1%. Caution: operating margin is thin at 3.5% and free cash flow margin is negative at -1.4%.
Alaska Air Group, Inc. ALK
Alaska Air Group grew revenue 21.3% last fiscal year, the fastest among the established airlines here, and scores 61 overall. Caution: operating margin is -1.5%, return on equity is -4.8%, and debt-to-equity is 2.02, so growth has not yet turned into profit.
Allegiant Travel Company ALGT
Allegiant Travel has an Overall score of 55 and a positive operating margin of 4.9%, with a free cash flow margin of 4.0%. Caution: its Opportunity score is just 12, return on equity is low at 1.5%, and debt-to-equity is 1.97.
Joby Aviation, Inc. JOBY
Joby Aviation scores 48 overall and carries debt-to-equity of just 0.42. Caution: it is far from profitable, with an operating margin of -759.2% and a free cash flow margin of -639.2%, so it is a very different business from the established airlines.
American Airlines Group Inc. AAL
American Airlines has an Overall score of 42. Revenue grew just 0.8%, operating margin is 1.7%, and free cash flow margin is 0.5%, all slim but positive. Caution: return on equity and debt-to-equity are not available, so its debt load cannot be checked here.
Frontier Group Holdings, Inc. ULCC
Frontier Group scores 36 overall, with an Opportunity score of 56 that is stronger than its Quality score of 22. Caution: operating margin is -10.1%, free cash flow margin is -12.3%, and debt-to-equity is a heavy 23.66.
JetBlue Airways Corporation JBLU
JetBlue has the lowest Overall score here at 17. Revenue fell -2.3%, operating margin is -5.9%, and free cash flow margin is -11.4%. Caution: debt-to-equity of 6.19 and return on equity of -55.8% point to financial strain.
Common questions
Why do airline stocks often have thin margins?
Airlines have large fixed costs such as aircraft, fuel and labor, and ticket prices are competitive. That often leaves little profit from each dollar of sales, so operating margin is a useful figure to check.
What does debt-to-equity mean for an airline?
Debt-to-equity compares what a company owes with the money invested by its owners. A higher ratio means more borrowing, which can make it harder to cope when business slows. Airlines often carry notable debt, so it is worth comparing across the list.
Does a high Marvin score mean a stock is a good investment?
No. Marvin's scores show how a company compares with others in its industry today, based on figures such as growth, margins and debt. They do not predict future results and are not advice to buy, sell or hold.
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Marvin's scores (0-100) compare each company with others in its industry today. Growth and margin figures come from SEC filings. This is general information, not personal investment advice or a recommendation to buy or sell anything. Do your own research.