Airline Stocks Give Portfolios A Lift
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."
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.