Allegiant Travel Comany (ALGT-Q)

(A Top Pick Nov 24/15. Down 24.3%.) Long. (A Pairs trade with a Short on Westjet (WJA-T). This company has the oldest, least efficient fleet in all North America. Their planes are about 29 years old. Being such inefficient planes, they are the biggest beneficiary of cheap jet fuel prices. The company decided to buy more efficient planes, which he did not like, so he sold his position at the end of June. This trade is more driven by Westjet.

(A Top Pick April 22/15. Total return was up 10.48%.) Long (and Short Westjet.) This is the least efficient airline in North America. They have 29-year-old planes which are not very efficient. As a consequence, nobody is a bigger beneficiary of cheap jet fuel prices.

Long. (A Pairs trade with a Short on Westjet (WJA-T). This doesn’t have the issues of the Cdn$. Also has one of the oldest fleets around, so one of the biggest beneficiaries of cheaper fuel prices.

Long (and Short Westjet.) This company has a terrible fleet. In comparison Westjet has a better product, is a better company and has a better fleet. However, when jet fuel prices go down, you want the least efficient fleet possible. The bulk of their fleet is McDonnell Douglas 80s, which eat up a lot of fuel. When fuel prices go down, they are a huge beneficiary. Just reported a 100% increase in their EPS.