Maybe it is the Iceland volcanic ash clouds, maybe it was the market, but more likely than not it was the state of airline mergers that crushed airlines today. Continental Airlines, Inc. (NYSE: CAL) closed down 10.2% at $20.53 and UAL Corp. (NASDAQ: UAUA) closed down 10.6% at $19.77. The ‘other merger candidate’ of US Airways Group, Inc. (NYSE: LCC) closed down over 7% at $6.86; and the current Big Kahuna AMR Corporation (NYSE: AMR) closed down 5.5% at $7.17. Even in the darlings… Southwest Airlines Co. (NYSE: LUV) was down 2.9% at $13.01 and JetBlue Airways Corporation (NASDAQ: JBLU) closed down 2.8% at $5.54 on the day.
What do you think about this merger between Continental and UAL? Take our survey here, results are anonymous and you get to choose one of the GOOD/BAD for each on what this means for consumers and what this means for investors.
JON C. OGG