Airline ADRs !!!

Cathay Pacific Photo Courtesy:

In this post let us review a few airline stocks.I know that the airline industry is a in a mess now with all the layoffs, disappearing profits, safety issues etc. Still there may be some opportunities if we know where to look and what to look for in an airline.

1. Cathy Pacific Airways – CPCAY

Cathay Pacific is a world class airline out of Hong Kong. The airline is a favorite airline for many travelers.

CPCAY is down some 24%+ YTD. Currently trades at around $9.85.

2. Ryan Air – RYAAY

This is a discount airline based in Ireland. The fly over 100 routes to many cities in Europe. Their ticket prices are very very cheap since Ryan Air uses all the second tier airports as opposed to the main airports in big cities. For example in Paris, they fly into Orly which is just outside of Paris instead of CDG. Their website currently lists fares for £10 to cities like Dublin,Oslo etc from London’s Stansted airport. Also these discount airlines do not offer any free food and other perks regular airlines offer. They charge for other things like priority seating, baggage charges above the allowed limit etc.

Their main competitor is EasyJet. EasyJet flies to many in Europe and now flies to Turkey, Cyprus etc. Service in these airlines are comparable to other lines.Easyjet stock is not available in the US.

RYAAY is down 28% YTD. But at $28+ this might be worth a look.

3. Lan Airlines – LFL
Lan Airlines is a growing carrier based in Chile. LFL serves the fast growing tourism industry in the Latin American countries.

LFL is up some 5%+ YTD. Currently trades at around $14.00. The stock was split 2 for 1 last year after a great run. Seems like the stock is taking a breather after this run. Longterm LFL is a good value play that concentrates in one of the growing part of the world.

Other Airline ADR stocks:

4. TAM Airline – TAM
Country – Brazil

5. Gol Linhas Aereas Inteligentas – GOL
Country – Brazil

The famous Kai-Tak airport approach in Hong Kong. Why did this plane cross the road? Leave your answer in the “Comments” section.

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