Airline Consolidation

Delta (NYSE:DAL) may bid for U.S. Airways (NYSE:LCC). Both companies may be in a consolidation mode and could be considering bids for American Airlines. Last year, the owner of American Airlines, AMR filed for bankruptcy.

AMR has attracted interest from TPG, but any type of deal would probably take months. Delta, second largest airlines in the U.S. could face antitrust issues trying to acquire AMR. Ray Neidl, an analyst for Maxim, thinks regulators would have problems Delta acquiring LCC, “due to the extensive overlap in their systems…”, and LCC would be more favored to acquire AMR.

Here’s how these stocks are trading now:

Delta Air Lines Inc. (NYSE:DAL): DAL shares recently traded at $10.78, up $0.39, or 3.75%. They have traded in a 52-week range of $6.41 to $12.13. Volume today was 12,699,245 shares versus a 3-month average volume of 12,037,800 shares. The company’s trailing P/E is 10.67, while trailing earnings are $1.01 per share.

US Airways Group, Inc. (NYSE:LCC): LCC shares recently traded at $8.48, up $0.3, or 3.67%. They have traded in a 52-week range of $4.53 to $10.53. Volume today was 11,183,847 shares versus a 3-month average volume of 7,352,200 shares. The company’s trailing P/E is 19.27, while trailing earnings are $0.44 per share.