X
<

An Investor’s Guide to Spirit Airlines: November 2016 Recap

PART:
1 2 3 4 5
Part 5
An Investor’s Guide to Spirit Airlines: November 2016 Recap PART 5 OF 5

How Did Spirit Airlines Stock Respond to Its November Performance?

Spirit Airlines stock

Since Spirit Airlines’s (SAVE) traffic release on December 8, 2016, the stock has risen 0.05%. Most the other airlines have also gained value during the same period. United Continental (UAL) rose 3.3%, followed by Alaska Air Group (ALK), which rose 3.1%.

JetBlue Airways (JBLU) rose 1.7% and Southwest Airlines (LUV) rose 1.2%. Allegiant Travels (ALGT) rose 0.33% during the same period. Delta Air Lines (DAL) saw the biggest loss, falling almost 2.4%, followed by American Airlines (AAL) with a fall of 0.35% during the same period.

How Did Spirit Airlines Stock Respond to Its November Performance?

Year-to-date performance

Until October 2016, all airlines were trading in the red. That changed in November 2016, as activist investor and long-term airline bear Warren Buffett invested in airlines.

While most airlines continue to trade in green year-to-date through December 23, 2016, Delta Air Lines and JetBlue Airways continue to be in the red zone. JBLU has lost almost 1.7% YTD (year-to-date) and Delta Air Lines has lost 1.6% YTD. This is still a huge improvement compared to the 25%–30% loss both stocks reported until October.

Other airlines have gained year-to-date 2016. Spirit Airlines (SAVE) tops the charts with a rise of 47.5%, followed by United Continental, which rose 30.5%. Southwest Airlines rose 17.1%, American Airlines rose 14.5%, Alaska Air Group rose 14.5%, and ALGT rose 0.5% year-to-date.

Industry performance

After a volatile start, the markets have performed quite well in 2016. The broader market, tracked by the SPDR S&P 500 ETF (SPY), has risen 10.7% year-to-date.

Economic growth is a major factor impacting airline industry demand and as a result, the industry has closely tracked the market. Year-to-date through December 23, 2016, the Dow Jones US Airline Index (DJUSAR) has risen 11.8%.

As air travel is a discretionary budget item, we can also compare the industry’s performance to the consumer discretionary sector. The Consumer Discretionary SPDR ETF (XLY) has risen 5.5% year-to-date.

Please visit the Market Realist Airlines page for ongoing updates.

Interested in ALGT? Receive notifications on the latest research and sign up for a Market Realist account in one simple step:

Suceess! Your Market Realist account has been created and you’ll receive email alerts on the latest research. Check your email for your temporary account password.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Click here to manage subscriptions.

X

Please select a profession that best describes you: