Virgin America (NASDAQ:VA): The Hottest IPO In The Market


Virgin America (NASDAQ:VA) is one of the hottest stocks around on the market these days as far as the airline companies are concerned. Virgin America (NASDAQ:VA) rose up by 72 percent over its Initial Public Offering price of 23 dollar, now standing just under 34 dollar since the market closed on Friday. The main reason Virgin America (NASDAQ:VA)’s stock grew is because investors have been showing immense interest in airline stocks lately. But Virgin America (NASDAQ:VA) can’t be deprived of credit here as its growth potential and value is a rare combination for any airline to offer.

Virgin America (NASDAQ:VA) had a turbulent history, tasting success and losses along the lines at different intervals. Virgin America (NASDAQ:VA) was slow at the time of its Initial Public Offering, growing by just 5 percent through the first three quarters of 2014. It was the second consecutive year through which Virgin America (NASDAQ:VA) had remained sluggish. Before that the company was soaring high; between 2010 and 2012 Virgin America (NASDAQ:VA) shot its capacity by 73 percent. Now fresh from its IPO, Virgin America (NASDAQ:VA) is trying to get back on track with its stock improving. Virgin America (NASDAQ:VA) might not be at the rapid pace as it once was during 2010-2012 but it’s better to be sailing safely than on turbulent waters.

Virgin America (NASDAQ:VA) added only one aircraft to its fleet in the last two years but it’s got plans for the future. Virgin America (NASDAQ:VA) will be introducing 10 Airbus A320 aircraft to its fleet, which means the fleet will then have 63 planes. This would drive Virgin America (NASDAQ:VA)’s growth by 20 percent. Hence, those who wanted to know what we meant by Virgin America (NASDAQ:VA)’s personal growth, that’s the answer to that question. Not only that, the company’s CEO believes that Virgin America (NASDAQ:VA) might grow about 10-15 percent beyond 2016.

Virgin America (NASDAQ:VA)’s relatively inexpensive price tag increases its growth potential, hence the boarding of investors on Virgin America (NASDAQ:VA)’s stock. It’s true that Virgin America (NASDAQ:VA)’s profit margin is slow comparative to rivals but once the new routes are defined and matured, Virgin America (NASDAQ:VA)’s drive capacity will increase, leading to the company being recognized on a large scale.

One other thing that attracts the investors regarding Virgin America (NASDAQ:VA) is that its popularity. The high end airlines are losing their luster against Virgin America (NASDAQ:VA). Customers, especially families are opting for Virgin America (NASDAQ:VA) more than ever before probably because of the lower prices.

It’s only a matter of time Virgin America (NASDAQ:VA) becomes one of the renowned airlines of U.S. With its fleet number increasing and new routes being added, Virgin America (NASDAQ:VA) will have the entire inventory needed to become a great airline. Virgin America (NASDAQ:VA) now needs to remain stable, stay out of trouble as far as unions are concerned and keep distance from scandals; solve its managerial issues and make sure that the customer always feels calm and safe. That’s the secret to become a successful airline.