Airline Stocks: Could a Pilot Shortage Squeeze Regional Airlines?

Airline Stocks: Could a Pilot Shortage Squeeze Regional Airlines?

Research  these Stocks on Kapitall’s Playground Now

 
research now

A pilot shortage is causing difficulties for some airline stocks, especially regional providers. 

Airlines have done incredibly well in the early weeks of 2014, led in part by American Airlines (AAL), now the world's largest carrier after its merger with US Airways. However, while the big conglomerates have prospered, regional airlines are facing a major problem in the form of pilot shortages. 

After a Continental Airlines (UAL) regional partner crashed in 2009, Congress initiated an investigation and mandated industry changes. The resulting regulations increased the amount of flight hours first officers need to earn an Airline Transport Pilot certificate by a factor of 6

That made becoming a pilot more expensive. In some cases getting the flight-time you need can cost as much as $100,000. That's not too big a deal for the pilots working for giants like American whose starting salaries are around $60,000 a year, but for pilots at regional airlines like Republic Airways (RJET) the new regulations present a substantial financial burden. Starting salaries at the smaller shops start around $21,000 – hardly enough to pay off such a large amount of debt. As a result, far fewer aspiring pilots are completing training. It's just not worth it. 

At the moment there are thousands of furloughed and expat pilots who've chased better salaries overseas. If you work for Emirates Airlines, as opposed to a regional company, the salaries are as much as 4 times larger – not counting benefits. 

Will regional airlines find the money to pay their pilots better, solve the problem of expensive training, or face continued pressure from larger competitors? We built a list of the 7 regional airlines that are also publicly traded. 

Click on the interactive chart below to view data over time. 

1.Allegiant Travel Company (ALGT, Earnings, Analysts, Financials):Operates as a leisure travel company in the United States. Market cap at $1.71B, most recent closing price at $92.42.
 

 

2.Alaska Air Group, Inc. (ALK, Earnings, Analysts, Financials):Operates as an airline company serving destinations in the western United States, Canada, and Mexico. Market cap at $5.33B, most recent closing price at $77.51.
 

 

3.Hawaiian Holdings Inc. (HA, Earnings, Analysts, Financials):Engages in the scheduled air transportation of passengers and cargo. Market cap at $538.01M, most recent closing price at $10.23.
 

 

4.JetBlue Airways Corporation (JBLU, Earnings, Analysts, Financials):Provides passenger air transportation services in the United States. Market cap at $2.39B, most recent closing price at $8.50.
 

 

5.Southwest Airlines Co. (LUV, Earnings, Analysts, Financials):Operates as a passenger airline that provides scheduled air transportation in the United States. Market cap at $14.85B, most recent closing price at $21.32.
 

 

6.Republic Airways Holdings Inc. (RJET, Earnings, Analysts, Financials):Provides scheduled passenger services. Market cap at $436.46M, most recent closing price at $9.45.
 

 

7.SkyWest Inc. (SKYW, Earnings, Analysts, Financials):Operates as a regional airline in the United States. Market cap at $622.40M, most recent closing price at $12.11.
 

 

(List compiled by James Dennin. Analyst ratings sourced from Zacks Investment Research.)

Use Kapitall's Tools: Looking for ways to analyze this list?

Use this article snapshot as a launch pad: Simply click on the links, and use Kapitall's tab navigation to browse through the data…
 

Analyze These Ideas: Getting Started

Dig Deeper: Access Company Snapshots, Charts, Filings

ABOUT US

© Kapitall, Inc. All rights reserved. Kapitall Wire is a division of Kapitall, Inc. Kapitall Generation, LLC is a wholly owned subsidiary of Kapitall, Inc.

Kapitall Wire offers free cutting edge investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by Kapitall Inc., and its affiliate companies.

Open a free account today get access to virtual cash portfolios, cutting-edge tools, stock market insights, and a live brokerage platform through our affiliated company, Kapitall Generation, LLC. 

Securities products and services are offered by Kapitall Generation, LLC - a FINRA/SIPC member. 

playthemarket640jpg

4 Responses to “Airline Stocks: Could a Pilot Shortage Squeeze Regional Airlines?”

  1. davidanjan668 says:

    Sundance vacation is mostly a professional Sundance Annual vacations Sundance Holidays is really an around the nation local store trip firm.
    http://www.expedia.com/Sundance.d6138956.Destinat

  2. You have some really good ideas in this article. I am glad I read this. I agree with much of what you stated in this article. Your information is thought-provoking and interesting.

  3. Terima kasih banyak atas informasinya. Mari terus bersama membangun dan bermanfaat untuk masyarakat.

    Jika anda berkunjung ke Jogja, kami siap melayani anda dengan Homestay Murah Di Jogja, lengkap dengan City Tour / Paket Tour Berwisata Di Jogja BerhatiNyaman dan Rental Mobil lengkap dengan sopir untuk melayani anda.

    Call 0821 3485 1324 PIN BB 26C3F5CD untuk reservasi.

  4. hi guy, your post so great, please keep going and i'm wait to see another post

Leave a Reply

Protected by WP Anti Spam

playthemarket280jpg