Unfortunately, any hint of the previous years’ price wars or capacity increases causes investors to unload their shares of airlines. Third, earnings estimates for airlines have been on the rise lately and this argues against falling share prices. Lastly, this recent weakness has been particularly hard on the larger airlines like Delta. SkyWest, Inc. operates as a contractor, providing flights to the larger airlines, including Delta, United Continental and American Airlines. SkyWest is trading at just 12 times forward earnings, versus a recent multiple of 17 times forward earnings for the S&P 500.

Source: Forbes February 23, 2018 14:15 UTC