Airlines are gearing up for their busiest time of the year. Triple-A projects an almost 2% increase in air travel over the Thanksgiving period compared to last year. But not airline stocks are created equal. Which are positioned to take off?According to Maxim Group senior airline analyst Ray Neidl niche growth carriers are the stocks in this space that have tailwinds.
"Look at Alaska Airlines," he says. Unlike some of the big carriers, they're growing. And I don’t think it’s fully valued at current prices.”And he also says take a look at Spirit, Allegiant , and Hawaiian. “These are all niche carriers that are doing well even in the weak economy. ” Looking at the big airlines, trader Steve Grasso tells us he’s long AMR but after the comment, Neidl just cringes. “When a stock is below $2/share the market is saying there’s a serious chance of bankruptcy. If American doesn’t get big cost savings agreements from its pilots and other cost savings, they will probably have to restructure,” Neidl cautions.
______________________________________________________Got something to to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to email@example.com.Page 1 of 5 | Next Page