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Skywest Inc is Among the Companies in the Airlines Industry With the Highest Debt to EBITDA Ratio (SKYW, AAL, CPA, UAL, SAVE)

By Amy Schwartz

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.

Skywest Inc ranks highest with a a debt to EBITDA ratio of 20.3. American Airline is next with a a debt to EBITDA ratio of 3.8. Copa Holdin-Cl A ranks third highest with a a debt to EBITDA ratio of 2.5.

United Continent follows with a a debt to EBITDA ratio of 2.1, and Spirit Airlines rounds out the top five with a a debt to EBITDA ratio of 2.1.

SmarTrend recommended that its subscribers protect gains by selling shares of Spirit Airlines on July 21st, 2017 by issuing a Downtrend alert when the shares were trading at $50.03. Since that call, shares of Spirit Airlines have fallen 32.0%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest debt to ebitda ratio skywest inc american airline copa holdin-cl a united continent spirit airlines

Ticker(s): SKYW AAL CPA UAL SAVE