US airlines’ shares start to take off
DELTA AIR LINES, AMR – which owns American Airlines – and UAL have seen their shares more than double in the US since March, in the latest sign that the stricken aviation sector is starting to recover.
AMR was the highest gainer between the start of March and mid September for the world’s major airlines, as its shares went up threefold.
And UAL, which owns United Airlines, and Delta – the world’s largest carrier – saw their shares more than doubled.
But “buy” ratings from analysts outweigh “holds” and “sells” on only two companies: Delta and Continental.
The International Air Transport Association (IATA) estimates that the airline industry will be hit by $11bn of losses in 2009, but the companies’ performance indicates that the worst is over for the sector.
The news comes despite a dip in share prices a day after AMRand USAir said they would launch share sales to raise money to get through the slump.