Airline executives aren't getting all weepy about at least one aftershock of the government shutdown as the DOJ requests a stay in its legal fight to stop the merger of US Airways (LCC +1.8%) and American Airlines (AAMRQ.PK).
The DOJ's aggressive stance put a mild damper on an industry where capacity discipline had turned a corner.
Airline stocks have been more sensitive than other sectors to government shutdown news and today the group is rallying in force with the sale of Frontier Airlines by Republic Airways to a P-E group also in the background.
Advancers: Republic Airway (RJET) +6.2%, Alaska Air (ALK) +4%, United Continental (UAL) +2.9%, Spirit Airlines (SAVE) +2.2%, Delta Air Lines (DAL) +1.7%.
IATA cuts its estimate for global airline profits in 2013 to $11.7B, a reduction of 8% from a prior forecast.
The association notes higher oil prices are the main factor for taking a dimmer view of profits for the sector.
Related stocks: Delta Air Lines (DAL), United Continental (UAL), US Airways (LCC), Ryanair (RYAAY), Cathay Pacific Airways (CPCAY.PK), Singapore Airways (SINGY.PK), China Eastern Airlines (CEA), China Southern Airlines (ZNH), Copa Holdings (CPA), Gol Linhas (GOL), and Latam Airlines (LFL).