Southwest Airlines is no longer in the top three airlines by market capitalization (here are the top three airlines)

The stock of a listed airline and its value to shareholders depends on a number of things - obviously, its earnings, but also the company's growth period and its recognition among ordinary customers.

Until recently, the three airlines with the highest market capitalization (i.e., the aggregate value of a company's shares held by shareholders) included European low-cost carrier Ryanair (Ryanair) (RYAOF ), a mass transit center located in Atlanta, Delta Air Lines (delta (Greek letter Δδ) Air Lines) (DAL ) and U.S. low-cost carrier Southwest Airlines. )LUV). Founded in 1967 with its headquarters in San Antonio, the latter airline has been undergoing a significant period of growth over the past decade as its core markets have expanded from its namesake region to more transnational routes and international markets. The airline has a market capitalization of US$17 billion by the end of 2023.

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IndiGo, a low-cost carrier serving the Indian market, was launched in 2006 and is currently listed on two of India's stock exchanges under the InterGlobe Aviation banner. The airline's market capitalization reached 1.466 trillion Indian rupees or 17.58 billion U.S. dollars at the end of this year.

Ground crew walk past an Indigo Airlines plane taxiing at Netaji Chambash Chandra Bose International Airport in Kolkata. Photo by Indranil Mukherjee/AFP/Getty Images.

INDRANIL MUKHERJEE/Getty Images

There's a reason why this low-cost carrier is getting investor attention.

On April 12, the company's market capitalization on the Bombay Stock Exchange stood at 3,806 rupees, or about $45.66 per person. That's a jump of nearly 28% from the beginning of 2024, and it's the third most valuable airline in the world, edging out Southwest Airlines.

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The increase caught the attention of investors. Morgan Stanley sent out a note to its clients stating that "fourth-quarter yields exceeded earlier guidance for year-over-year flatness," while Jefferies changed its rating to "hold" from "outperform " to "Hold," while raising its yield estimate to 2% and its earnings before interest, taxes, depreciation and amortization (EBITDA) estimate to 16% from 14%.

Breeze Airways is another airline that has started to turn a profit.

In the United States, Breeze Airways, an artisanal company based in Salt Lake City, had its first profitable month since its inception in 2021 (new airlines usually take 8-10 years to become profitable).

Breeze's rapid growth has also gained investors' attention to its potential, as demand for travel is at an all-time high and many travelers are looking for affordable alternatives to mainstream airlines. Several investment firms have listed the company (which is not yet public) as one to watch.

Meanwhile, Spirit Airlines (SAVE) After a federal judge blocked JetBlue (JBLU) After the acquisition of the company, it has been facing rumors of bankruptcy.

With no other options, Spirit Airlines began laying off pilots, delaying aircraft deliveries, and canceling some routes it had planned to open as part of its development program. Many of Spirit's planned 2025 airbus deliveries (EADSF) aircraft, which will now not be delivered until at least 2030 and 2031.

"We believe that the current regulatory hurdles do not allow us to complete this transaction in a timely manner in accordance with the carpet agreement," said Ted Christie, Spirit's chief executive officer, in a press statement.