Airline Stocks Give Portfolios A Lift

Friday, 25 May 2007 | 4:37 PM ET

Fuel prices are taking off -- but that doesn’t mean airline stocks can’t take the skies, said Ray Neidl, an airline analyst at Calyon Securities on "Power Lunch."

Smart Money in Airlines
Some airline stocks that might take off, with Ray Neidl, Calyon Securities airline analyst and CNBC's Sue Herera

How much will oil and fuel prices eat into airline profit? Not too much, Neidl said -- he predicts "several good quarters" ahead.

However, he believes consolidation within the industry won’t happen within the next 12 months: “If a potential deal were to be announced, I think the whole sector would take off.”

Neidl is bullish on legacy carriers, pointing to AMR unit American Airlines as a “safe” pick.

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  • Sue Herera is a founding member of CNBC, helping to launch the network in 1989. She is co-anchor of "Power Lunch."

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Kenny Polcari