LukeAisleWalker
Veteran
- Sep 29, 2007
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Sector Snap: Airline Shares Head Lower
AP
Posted: 2008-02-04 12:34:31
NEW YORK (AP) - Airline shares fell Monday as oil prices advanced and an eagerly anticipated announcement of industry consolidation appeared less imminent.
The Amex Airline Index sank 3.9 percent to 36.91 in midday trading. Broadern efforts "may finally begin in the next couple of months - unless Washington puts the brakes on the momentum that is currently building."
Neidl said consolidation will likely be led by a deal between Delta and Northwest. That in turn could lead Continental Airlines Inc. and United to the table.
"We believe such a scenario would reawaken market interest in the industry, bidding up prices of the whole airline sector," he wrote.
But bidding went nowhere Monday. Early in the day, CNBC, citing people familiar with the situation, reported that Delta and Northwest continue to hold talks but that a deal is unlikely to occur this week, according to Dow Jones Newswires.
Separately, Credit Suisse analyst Daniel McKenzie said talks between Delta and Northwest have "evidently hit a snag (for now) over leadership issues."
Northwest shares fell $1.48, or 7.4 percent, to $18.51, while United shares declined $2.13, or 5.2 percent, to $39.01. Shares of Delta sank 56 cents, or $3.02, to $17.97. Continental shares fell 83 cents, or $2.84, to $28.42.
Copyright 2008 The Associated Press.
Well, I guess the public, not to mention all of us employees who may be affected, will be left hanging in the lurch even longer while the egos/power trippers battle it out.
AP
Posted: 2008-02-04 12:34:31
NEW YORK (AP) - Airline shares fell Monday as oil prices advanced and an eagerly anticipated announcement of industry consolidation appeared less imminent.
The Amex Airline Index sank 3.9 percent to 36.91 in midday trading. Broadern efforts "may finally begin in the next couple of months - unless Washington puts the brakes on the momentum that is currently building."
Neidl said consolidation will likely be led by a deal between Delta and Northwest. That in turn could lead Continental Airlines Inc. and United to the table.
"We believe such a scenario would reawaken market interest in the industry, bidding up prices of the whole airline sector," he wrote.
But bidding went nowhere Monday. Early in the day, CNBC, citing people familiar with the situation, reported that Delta and Northwest continue to hold talks but that a deal is unlikely to occur this week, according to Dow Jones Newswires.
Separately, Credit Suisse analyst Daniel McKenzie said talks between Delta and Northwest have "evidently hit a snag (for now) over leadership issues."
Northwest shares fell $1.48, or 7.4 percent, to $18.51, while United shares declined $2.13, or 5.2 percent, to $39.01. Shares of Delta sank 56 cents, or $3.02, to $17.97. Continental shares fell 83 cents, or $2.84, to $28.42.
Copyright 2008 The Associated Press.
Well, I guess the public, not to mention all of us employees who may be affected, will be left hanging in the lurch even longer while the egos/power trippers battle it out.
