4 Top Airline Stocks to Buy Now

Over the past decade, consolidation has transformed the U.S. airline industry. The four largest airlines now control more than 80% of the market. However, competition is still fierce. American Airlines and United Continental (NYSE: UAL) -- two of the three largest carriers -- are on pace to report sharp earnings declines this year. With oil prices on the rise, profits could continue to move in the wrong direction for both companies in 2018.

By contrast, many of the industry's smaller players have better cost structures than their larger rivals. They also have significantly more room to grow. And in many cases, they offer better service than larger carriers that charge higher prices.

Furthermore, most airline stocks have been beaten down over the past year. In some cases, it's been due to rising costs. In other cases, the problem has been deteriorating unit revenue (a measure of revenue that adjusts for changes in the amount of flying an airline does). As a result, Alaska Air (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NASDAQ: SAVE), and Hawaiian Holdings (NASDAQ: HA) all look highly attractive right now. In fact, all four stocks could potentially double (or more) in the next three to five years.

Source: Fool.com