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Airline stocks take a turn higher, with gains of large carriers outpacing those seen by...

Airline stocks take a turn higher, with gains of large carriers outpacing those seen by regionals. Consolidation, narrower debt loads, and emerging labor cost controls are the factors that could set up a sector rally if everything takes off on time, according to analysts. Advancers: JBLU +1.6%, UAL +3.5%, LUV +1.9%, DAL +2.5%, LCC +3.4%.
Comments (3)
  • vcarrino
    , contributor
    Comments (10) | Send Message
     
    Airline stocks will more than double after amr merges with lcc. Lcc to 30 ual to 45 after they fix their yield issues
    20 Aug 2012, 10:58 AM Reply Like
  • fgovers
    , contributor
    Comments (16) | Send Message
     
    Anybody: what would be a realistic 1 year price target for LUV?
    20 Aug 2012, 11:11 AM Reply Like
  • vcarrino
    , contributor
    Comments (10) | Send Message
     
    The more consolidation, capacity limits, and profitable quarters that occur, the higher airline multiples (currently at 3x for lcc) will rise. For a guide, see the 50% move stx and wdc have had in the last few months after a good 2q. After another year of consistent returns, earnings multiples will go to 10. At the last peak under the same circumstances in 2006, lcc stock was in the 50's.
    I've been an analyst and hedge fund investor in these industries for almost thirty years.
    21 Aug 2012, 01:26 AM Reply Like
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