1 Airline That Should Buy Back More Stock -- and 1 That Should Buy Back Less

1 Airline That Should Buy Back More Stock -- and 1 That Should Buy Back Less

In the past few years, U.S. airlines' profits have surged due to a combination of moderate oil prices and strong demand. Many airlines have taken advantage of their rising cash flow to buy back lots of stock. This was a particularly attractive option because most airline stocks have been quite cheap in recent years.

American Airlines (NASDAQ: AAL) and Hawaiian Holdings (NASDAQ: HA) are two of the U.S. airline operators that have implemented share repurchase programs in recent years.

With its earnings at record levels and a very modest debt burden, Hawaiian Holdings should strongly consider accelerating its buybacks. By contrast, American Airlines' profitability is declining and the company has a huge debt load. As a result, American may need to suspend its share repurchases for a while.

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Source: Fool.com