WASHINGTON (MarketWatch) -- US Airways LCC +3.13% , Hawaiian Holdings HA +11.34% and American Airlines parent AMR Corp. AMR +2.62% were upgraded Tuesday at BofA Merrill Lynch. "Despite concerns that recent stock market declines will induce a recession, airline bookings in the past two months have improved from the prior two months," the bank said in a note to clients. Furthermore, declining oil prices due to weaker economic growth and a resolution to the Libyan crisis could shield airline profits from decelerating demand. Merrill Lynch raised US Airways and Hawaiian Holdings to buy from neutral and upped AMR to neutral from underperform. The bank added Delta Air Lines DAL +1.66% and United Continental UAL -3.01% remain their "top two picks."
AMR & LCC stocks upgraded by BOFA
- Thread starter damajagua
- Start date
Hopeful
Veteran
- Dec 21, 2002
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BofA must have the inside sccop that the TWU is nearing another concessionary deal! On our behalf of course!
Frank Szabo
Veteran
It still has to be passed by the membership - or does it?
Do we get another fancy book to burn first?
Hopeful
Veteran
- Dec 21, 2002
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You need to read the TWU Constitution...not the contract....to see that the TWU leader has certain powers to protect the memebership as a whole....
little had made that clear following the 2003 concessionary contract should it had been voted down!
The international owns the contract and Little & Co. haver certain powers.
This makes no sense at all. I can see an upgrade to LCC, as lower fuel prices will help USAir the most since it has no fuel hedges at all (meaning that it won't be locked into floor prices as fuel prices drop). Upgrade AMR? Only if we see a repeat of May, 2003, and I give that very slim odds. Like slim and none. Bank of America is out to lunch. They must have some AMR they want to unload.
- Thread Starter
- Thread starter
- #6
I agree but it's just from underperform to neutral
last check wall street is not paying too much
attention to this. The stock is down.
Frank Szabo
Veteran
ROTFLMFAO!!!
An upgrade from "run like hell" to "blah". Is this supposed to be something significant? (FYI - "Run Like Hell" is part of the planting instructions after one throws Kudzu seeds on the ground.)
Actually, it's not too shabby for a company that takes business advice from a self-serving "union" on the property.
- Aug 20, 2002
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Has anyone seen my John Deere, lately?
FrequentFlierCA
Veteran
- Feb 25, 2008
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I don't agree that it makes "no sense at all". There is a potential leveling of input costs underway as the merged UA/CO negotiates unified labor contracts. I can't say for certain but would guess that some back room deals were made to facilitate union support of the merger. The paybacks - in the form of higher wages in new contracts - will mean that some of AA's rivals will have to raise fares to compensate. A higher yield environment like this can only help AA.
Hopeful
Veteran
- Dec 21, 2002
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But fear not, FFCA, UA/CO can file for another bankruptcy and reset the clock on any gains employees may have made!
care2purchasefood?
Member
- Jun 5, 2011
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