SOURCE: Paragon Financial Limited

Paragon Financial Limited

February 28, 2012 08:20 ET

AMR Corporation and Delta Air Lines Look to Offset Surging Fuel Costs

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

NEW YORK, NY--(Marketwire - Feb 28, 2012) - After a strong January, Airline stocks have collapsed this month. The Guggenheim Airline ETF (FAA) has fallen nearly seven percent this month as surging fuel prices threaten to compress airline profits. 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:

Jet fuel is the single biggest expense for the airline industry. As of Mid-February, jet fuel has risen 12 percent over the past year, according to the U.S. Energy Information Administration. The European debt crisis also threatens to hurt profits for the industry in 2012. The International Air Transport Association (IATA) emphasizes that the euro zone crisis is "far from over." Tony Tyler, IATA's Director General and CEO says that "failure to achieve a durable solution will have dire consequences for economies around the world. And it would most certainly tip the airline industry into the red."

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.

Most airlines have taken steps to offset rising fuel costs. Earlier this month several of the nation's major airlines hiked air fares, with United and Continental airlines initiating a $4 to $10 increase in round-trip ticket prices. Delta Airlines, U.S. Airways, and American Airlines matched the increase. JetBlue Airways has yet to increase fares, however.

Most major U.S. airlines -- except for U.S. Airways -- also hedge fuel costs. Hedges are financial bets on something similar to jet fuel, such as heating oil. That way, if oil prices rise, the airline makes money on the hedge, offsetting some of what it's losing on higher fuel prices, ABC News explains.

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