SOURCE: Paragon Financial Limited

Paragon Financial Limited

February 06, 2012 08:20 ET

Airline Industry Continues to Push for Consolidation

The Paragon Report Provides Equity Research on AMR Corporation & Delta Air Lines

NEW YORK, NY--(Marketwire - Feb 6, 2012) - Airline stocks have been on fire this year. The Guggenheim Airline ETF, which seeks to represent a modified equal-dollar weighted index designed to measure the performance of highly capitalized and liquid U.S. and international passenger airline companies, is up more than 24 percent in 2012 as higher ticket prices and leaner operations have boosted profits industry wide. The Paragon Report examines investing opportunities in the Airlines industry and provides Stock research on AMR Corporation (PINKSHEETS: AAMRQ) and Delta Air Lines Inc. (NYSE: DAL). Access to the full company reports can be found at:

According to The New York Times the airline industry's recipe for success has been straightforward: "fewer airlines, fewer planes and fewer seats combined with higher ticket prices and more fees." William S. Swelbar, a research engineer in the Massachusetts Institute of Technology's International Center for Air Transportation, argues that "consolidation is having a significant impact on pricing, no doubt. And the industry has rid itself of unprofitable routes."

CNN reports that American Airlines' bankruptcy has many in the industry questioning if a merger is in its future.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Airline industry register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

American Airlines has said it seeks to cut employee costs by 20 percent. The company plans to lay off 16 percent of its work force, terminate its pension plans and wants to cut back health benefits for current employees and retirees. CEO Thomas W. Horton said that the company hopes to return to profitability by cutting spending by more than $2 billion per year and raising revenue by $1 billion per year.

Last month Delta Air Lines reported that its fourth quarter earnings excluding some items more than doubled to $379 million, or 45 a share. Delta benefited from planes that were more than 80 percent full, which gave it more pricing power to raise fares and helped overcome increased jet-fuel expenses, Bloomberg reports.

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