Airlines Soar After J.P. Morgan Upgrade

Airlines Soar After J.P. Morgan Upgrade

  • Posted Wednesday, December 02, 2009 -
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Airlines are getting a bid this morning. The Amex Airline Index is up 3.2% vs. 0.4% for the broader S&P 500 stock index. Yesterday, J.P. Morgan analysts upgraded the sector, citing expectations for rising revenue. "We are constantly challenged by investors (which we welcome) as to why we should be confident in any revenue recovery whatsoever. The answer is simple: math. Demand trends at best are improving and at worst are stable, in our view," wrote J.P. Morgan analysts. The falloff in crude costs, driven by a bigger-than-expected rise in oil inventories, probably isn't hurting airlines either.

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