2024-07-17 21:26:14 ET
Summary
- The airline industry is a crowded place. Finding winners in this space is easier said than done.
- SkyWest stock, up 108% in the past 12 months, has outperformed all the major airline stocks during this period.
- The partnership business model of SkyWest helps the company earn a reliable stream of revenue through capacity purchase agreements.
- The company is addressing macro challenges successfully, including labor shortages in the regional airline sector.
- SkyWest is well-positioned to remain competitive in the regional market - or even see market share gains - because of three main reasons.
The airline industry is a crowded place. Finding winners in this space is easier said than done. Southwest Airlines ( LUV ) has been one of my favorites in this space for many years, but unfortunately, my investment in LUV has not gone according to plans, so far. While analyzing the prospects for the airline sector, I recently came across SkyWest, Inc. ( SKYW ), a regional airline operator that draws little attention from both investors and consumers....
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SkyWest: Despite The Surge, This Top Performer Remains A Bargain