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Highest Debt to EBITDA Ratio in the Airlines Industry Detected in Shares of Spirit Airlines (SAVE, AAL, SKYW, ALGT, UAL)

By James Quinn

Below are the three companies in the Airlines industry with the highest debt to EBITDA ratios. This ratio indicates how many years of EBITDA would be necessary in order to pay back all the debt (assuming Debt and EBITDA are constant). Typically, this ratio is considered to be alarming when it is greater than 3.0 but this can vary and should be looked at within the context of the industry.

Spirit Airlines ranks highest with a a debt to EBITDA ratio of 4.6. Following is American Airline with a a debt to EBITDA ratio of 4.2. Skywest Inc ranks third highest with a a debt to EBITDA ratio of 4.0.

Allegiant Travel follows with a a debt to EBITDA ratio of 3.2, and United Continent rounds out the top five with a a debt to EBITDA ratio of 2.6.

SmarTrend is monitoring the recent change of momentum in American Airline. Please refer to our Company Overview for the results of our proprietary technical indicators that have been scanning shares of American Airline in search of a potential trend change.

Keywords: highest debt to ebitda ratio spirit airlines american airline skywest inc allegiant travel united continent

Ticker(s): SAVE AAL SKYW ALGT UAL