deltawatch
Veteran
- Aug 20, 2002
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Airline Stocks Rise on Lower Oil, Buyout Speculation and Reports of Smooth Holiday Travel
NEW YORK (AP) -- Airline stocks rose Friday on lower oil prices, buyout speculation and reports of short lines and few delays during the first leg of holiday travel.
The Amex Airline Index rose 2 percent in morning trading. Light, sweet crude oil for January delivery fell 99 cents to $96.30 a barrel on the New York Mercantile Exchange. Fuel is one of the airline industry's biggest costs.
Shares of UAL Corp. rose $1.14, or 2.9 percent to $40.14 after a Business Week report that the company is still reviewing consolidation options despite denials from UAL and Delta Air Lines Inc.
An official with knowledge of the situation told The Associated Press last week that UAL and Delta have been discussing a combination that would keep the United name and the corporate headquarters in Chicago. Delta and United later denied they had any merger talks.
Investors have been pushing for airline consolidation to cut costs. Calyon Securities analyst Ray Neidl expects UAL and Northwest Airlines Corp. to be potential sellers and Delta, US Airways Group Inc., AMR Corp. and Continental Airlines Inc. to be potential buyers.
"Most of the participating parties seem to be ready to 'get on with the show,'" Neidl said in a note to investors, "including labor, managements, and financiers/the market -- even government regulators are moving in that direction." He noted that he does not expect consolidation to be "imminent, but when it comes it will be fast and furious."
Northwest shares rose 22 cents to $17.78 as Delta shares gained 43 cents, or 2.4 percent, at $18.36; US Airways added 38 cents at $20.32; AMR rose 74 cents, or 3.7 percent, to $20.75; and Continental rose 80 cents, or 3 percent, to $27.86.
Although there were delays in New York and other congested areas, the first leg of holiday travel was relatively smooth, according to several reports. Analysts and industry watchers expected delays to grow over Thanksgiving weekend, as surveys indicated a record 38.7 million U.S. residents were likely to travel 50 miles or more between Wednesday and Sunday, up about 1.5 percent from last year.
NEW YORK (AP) -- Airline stocks rose Friday on lower oil prices, buyout speculation and reports of short lines and few delays during the first leg of holiday travel.
The Amex Airline Index rose 2 percent in morning trading. Light, sweet crude oil for January delivery fell 99 cents to $96.30 a barrel on the New York Mercantile Exchange. Fuel is one of the airline industry's biggest costs.
Shares of UAL Corp. rose $1.14, or 2.9 percent to $40.14 after a Business Week report that the company is still reviewing consolidation options despite denials from UAL and Delta Air Lines Inc.
An official with knowledge of the situation told The Associated Press last week that UAL and Delta have been discussing a combination that would keep the United name and the corporate headquarters in Chicago. Delta and United later denied they had any merger talks.
Investors have been pushing for airline consolidation to cut costs. Calyon Securities analyst Ray Neidl expects UAL and Northwest Airlines Corp. to be potential sellers and Delta, US Airways Group Inc., AMR Corp. and Continental Airlines Inc. to be potential buyers.
"Most of the participating parties seem to be ready to 'get on with the show,'" Neidl said in a note to investors, "including labor, managements, and financiers/the market -- even government regulators are moving in that direction." He noted that he does not expect consolidation to be "imminent, but when it comes it will be fast and furious."
Northwest shares rose 22 cents to $17.78 as Delta shares gained 43 cents, or 2.4 percent, at $18.36; US Airways added 38 cents at $20.32; AMR rose 74 cents, or 3.7 percent, to $20.75; and Continental rose 80 cents, or 3 percent, to $27.86.
Although there were delays in New York and other congested areas, the first leg of holiday travel was relatively smooth, according to several reports. Analysts and industry watchers expected delays to grow over Thanksgiving weekend, as surveys indicated a record 38.7 million U.S. residents were likely to travel 50 miles or more between Wednesday and Sunday, up about 1.5 percent from last year.
:angry: :angry:
