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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
SkyWest: Despite The Surge, This Top Performer Remains A Bargain
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.
Dilantha De Silva is an experienced equity analyst and investment researcher with over 10 years in the investment industry. He writes insightful articles for Seeking Alpha, GuruFocus, TipRanks, and ValueWalk, with a significant following on Seeking Alpha. Dilantha’s expertise spans across various sectors, with a particular focus on small-cap stocks that are overlooked by Wall Street analysts. He is a CFA Level III candidate and an Associate Member of the Chartered Institute for Securities and Investment (CISI). Dilantha has been featured on CNBC and Bloomberg, and his work has been prominently showcased on Nasdaq, Yahoo Finance, and other leading investment platforms. When not analyzing stocks and writing, Dilantha is involved in private equity transactions, including acquiring and managing businesses.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of LUV either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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