Best Airline Stocks To Watch For 2015

Best Airline Stocks To Watch For 2015: United Continental Holdings Inc.(UAL)

United Continental Holdings, Inc., through its subsidiaries, engages in the provision of passenger and cargo air transportation services. As of February 24, 2011, it operated a total of approximately 5,675 flights a day to 372 airports on 6 continents from their hubs in Chicago, Cleveland, Denver, Guam, Houston, Los Angeles, New York, San Francisco, and Tokyo, as well as in Washington, D.C. The company was formerly known as UAL Corporation and changed its name to United Continental Holdings, Inc. on October 1, 2010. United Continental Holdings, Inc. was founded in 1934 and is headquartered in Chicago, Illinois.

Advisors' Opinion:

• [By Adam Levine-Weinberg]

  "Traditional" airlines
  United Continental (NYSE: UAL  ) definitely fits Buffett's description of a bad business. In 2012, the company lost money; even if you exclude merger and integration expenses, United posted a meager pre-tax profit margin of 1.5%. Moreover, the company is in the midst of a capital expenditures binge. United's management may be right that they are making necessary investments in the business. However, the extent of these investments should give investors pause. As I wrote last month, United has more than $15 billion in CapEx commitments over the next seven years, and is likely to spend nearly $20 billion in total CapEx during that time period (an average of nearly $3 billion/year). By contrast, operating cash flow -- money that could be used to pay for capex -- was only $2.4 billion in 2011, the best year United has had since its merger with Continental.

• [By Adam Levine-Weinberg]

  A price war is brewing between United Continental (NYSE: UAL  ) and Virgin America on two lucrative transcontinental routes. Since the merger of United and Continental several years ago, United has been the only carrier flying from Newark Airport (just outside New York City) to San F! rancisco and Los Angeles. However, earlier this month, low-cost carrier Virgin America began service on both of these routes, breaking United's monopoly.

• [By Trey Thoelcke]

  Less than three months after its rebirth, American Airlines Group Inc. (NYSE: AAL) is on pace for a record annual profit, according to analysts surveyed by Bloomberg. The consensus estimate of $3.5 billion would put it ahead of the $2.2 billion tally for Delta Air Lines Inc. (NYSE: DAL) and the $1.7 billion for United Continental Holdings Inc. (NYSE: UAL).

source from Top Penny Stocks For 2015:http://www.seekpennystocks.com/best-airline-stocks-to-watch-for-2015.html