Allegiant Travel

Currently, American Airlines (AAL), Southwest Airlines (LUV), and Alaska Air Group (ALK) are all trading at ~5x their forward EV-to-EBITDA multiples.

Spirit Airlines (SAVE) is headquartered in Miramar, Florida. It’s a pioneer of ultra-low-cost carrier or ULCC airlines.

Airlines have long been known as capital destroyers. In times of profitability (such as now), they increase capacity to an extent that can’t be filled.

One of the major risks to Frontier Airlines is the fact that almost 45% of its flights originate from a single hub—Denver.

For November 2016, Southwest Airlines’ (LUV) capacity grew 4.9% YoY (year-over-year). It’s slower than 5.4% YoY growth the previous month.

Currently, JetBlue Airways (JBLU) is valued at 4x its forward EV/EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple.

In 2015, Southwest Airlines’ prudent approach to capacity growth resulted in the better utilization of its capacity.

As of July 22, 2016, JetBlue was valued at 3.8x its forward EV-to-EBITDA multiple, which is lower than its average valuation of 4.8x since September 2009.

Revenues from American Airlines’ foreign operations make up about 30% of its total operating revenues. The airline has been consistently expanding its global footprint by adding new routes.

Spirit (SAVE) ranks first in profitability among seven airlines in the United States. The main driver for this ranking comes from its exceptional ability to manage costs.

The growth in e-commerce among various economies across the globe has helped shape the highly competitive courier service industry that we know today.

By 1983, FedEx (FDX) had become the strongest delivery business in the nation. It started a string of acquisitions in order to grow more.