Wanna buy an airline


Heading out
Originally uploaded by kryn13

 

I spend a lot of time on planes, so I'm a bit more attentive to that industry than perhaps I should be.

Southwest has a Debt to Capital ratio of .43 which means 43% of their total capital is debt. United has a ratio of .78.

Debt to Equity, a measure of how their total liabilities compare to their equity is 1.89 for Southwest and 4.4 for United. Another way to look at that is, for every $1.89 in liabilities Southwest has, they have $1 in Equity. So, United is a great deal more leveraged than Southwest.

Southwest has still been profitable every year for the past 36 years.

US Air is worth less than one new A380..about 1/3 less.

Today's Market Values:

Market Cap 3/5/09
  Billions
Southwest $ 3.71
Delta $ 2.77
Jet Blue $ 0.81
American $ 0.72
Alaska $ 0.59
United $ 0.48
Air Tran $ 0.32
US Air $ 0.24
Frontier $ 0.08