27-Sep-2010 3:55 PM
JetBlue, AirTran and Southwest lead US airline stock rally
Analysis
Summary
- US airline stocks rallied on Friday as US stocks surged.
- Falling oil prices benefited low-cost carrier (LCC) stocks.
- JetBlue saw a 5% surge in stock price due to favorable analysts' comments.
- AirTran, Southwest, and Delta also experienced stock price increases.
- The Dow Jones Industrial Average rose 1.86% and the S&P 500 index rose 2.12%.
- Benchmark crude oil prices closed at USD73.46 per barrel, down USD0.97 from the previous close.
The falling oil price helped LCC stocks in particular. Benchmark crude for October delivery was lower closing the trading session at USD73.46 per barrel in New York, down USD0.97 from the previous close.
JetBlue surged 5%, helped by a Barron's report citing favourable analysts' comments on the stock. According to the Barron's report, Deutsche Bank has a USD8 price target, while Bank of America/Merrill Lynch has a target of USD12. The stock closed at USD5.94 on Friday.
AirTran rose 3.6% while Southwest gained 3.5% to USD12.28 and Delta rose 3.4%.
North & South America selected airlines daily share price movements (% change): 24-Sep-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance