Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES

Current DateTime: 09:52:34 12 Nov 2009
LinksList Documentid: 24355697
powered by digg
See all Play-by-Play postsSee all Power Lunch posts
Text Size
Jul.03
1:59 PM ET
Tuesday, 3 Jul 2007
Three Airline Stocks to Watch

Airline stocks may be taking off -- despite such seeming drags as soaring fuel prices and bankruptcies. Andrew Wilkinson, senior market analyst at Interactive Brokers, told "Power Lunch" viewers why he sees a renaissance in passenger carrier shares.

Oil hit a 10-month high on Monday, but Wilkinson said that no longer spells financial doom for carriers: "The airlines have learned to hedge their fuel costs -- and are operating more efficiently than they have ever done," he said.

The analyst told CNBC's Sue Herera that carriers have used Chapter 11 bankruptcy protection as a tool, enabling them to revamp and reach that operating efficiency.

Nothing But Blue Skies?
Loading...
Loading...
Loading...

Three carriers to watch:

Northwest Airlines. Wilkinson pointed to "extreme bullishness on the call-option side" during the second half of June. And the volume of call-buying for the once-bankrupt company was "absolutely huge," he said.

Delta Air Lines. The analyst said that the Atlanta-based carrier -- which had declared bankruptcy on the same day (Sept. 14, 2005) as Northwest -- also saw big activity in June's latter half. Wilkinson noted that 115,000 December-contract call options were bought.

JetBlue Airways. Perhaps due to high-profile weather-related problems, "there were a lot of long-standing bear positions on JetBlue puts." But Wilkinson said that "last week, when the [airline] sector was upgraded," a major investor "abandoned" its bear call.

© 2009 CNBC.com

Tools:
PrintEmailAdd This share icon
  • digg share

CNBC HIGHLIGHTS

  • CNBC is liveblogging a talk given by Warren Buffett and Bill Gates to students at Columbia University.
  • US real estate prices have fallen dramatically, but some places are still doing well. See the best-performing zip codes this year.
  • Vote and suggest your own, and remember--there's a fine line between a hero and a zero.
  • A European dating site finds lovelorn singles from one specific country to be uglier than any other. Which is it?
  • Contributor David Pogue looks at two of the latest efforts to perfect the digital pocket camera.
  • Just in time for the holidays, the Triumph company of Japan offers the latest innovation in women’s undergarments.
ADD COMMENTS
Remaining characters


Current DateTime: 06:21:11 12 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 09:13:47 12 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:04:03 12 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:01:49 12 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters