Oil prices fall yet AAI stock down 5%

[Pimpin']

How is it that Oil drops and all other airlines are up 1-3% yet AAI stock is down 5%?

Something else is going on.

 

[funnyman12]

ummm....ya gotta give the tickers a few min to catch up. eg....yahoo finance was still showing AAI down $.09 and google finance showed AAI up $.14. Even the oil ticker on CNN was showing oil up for several minutes even thought it had fallen $4.

 

[Eagle757shark]

Perhaps a merger with Alaska Airlines may be coming, if oil continues to fall.

 

[Pimpin']

ummm....ya gotta give the tickers a few min to catch up. eg....yahoo finance was still showing AAI down $.09 and google finance showed AAI up $.14. Even the oil ticker on CNN was showing oil up for several minutes even thought it had fallen $4.

My bad

 

[funnyman12]

I don't think Alaska wants involvement with any airline. Though Alaska/Airtran combo would be great.

 

[Eagle757shark]

I don't think Alaska wants involvement with any airline. Though Alaska/Airtran combo would be great.

Unless they can get it at a good price. At the current price AirTran is trading on the markets, it could be an opportunity for a company like Alaska. If oil continues to retreat down closer to $100 dollars a barel, the consolidation talks may heat up again. Another reason why AirTran may be selling some airplanes to raise cash and cutting back capacity. Yes lots of it is driven by fuel, but some may be driven by a possible purchase in the future.

 

[Ty Webb]

Up 5% . . . Down 5%, that's the volatility of a stock trading at these prices. . . . a nickel a share spread = a few percentage points . . . No big deal.

What I want to know is who the hell buys airline stocks? As a short-term play, maybe. Long-term . . . . no way.

And that applies to an airline career, too! :laugh:

 

[Eagle757shark]

Up 5% . . . Down 5%, that's the volatility of a stock trading at these prices. . . . a nickel a share spread = a few percentage points . . . No big deal.

What I want to know is who the hell buys airline stocks? As a short-term play, maybe. Long-term . . . . no way.

And that applies to an airline career, too! :laugh:

I agree, who the hell would buy airline stock and then sit there and watch what it does daily. Not to smart!

 

[humveedriver]

Alaska/AirTran would be great, maybe even make sense. Both companies have sizable 737NG orders to boot, for eventual fleet commonality. AirTran would surely go for this, it was brought up in 2004, in recurrent by Joe Leonard. But Alaska wasn't interested back then, and with 5% reduction in capacity (by year end for Alaska), i doubt they would be interested now. I'm thinking if the whole industry moves towards consolidation, AirTran may have a chance of getting a merger/acquistion. But keep the conspiracies coming, it's alot more fun than reality right now.

 

[CoolSidePillow]

How is it that Oil drops and all other airlines are up 1-3% yet AAI stock is down 5%?

Something else is going on.

Your mother and father were brother and sister.

 

[Eagle757shark]

Alaska/AirTran would be great, maybe even make sense. Both companies have sizable 737NG orders to boot, for eventual fleet commonality. AirTran would surely go for this, it was brought up in 2004, in recurrent by Joe Leonard. But Alaska wasn't interested back then, and with 5% reduction in capacity (by year end for Alaska), i doubt they would be interested now. I'm thinking if the whole industry moves towards consolidation, AirTran may have a chance of getting a merger/acquistion. But keep the conspiracies coming, it's alot more fun than reality right now.

I think Alaska would be doing the acquiring, although the name would probable remain AirTran. I think the 5% reduction in capacity could be the very reason why this would be a good deal now. It seems like oil is heading down and hopefully below $100 dollars. With all the airlines attempting to build their piggy banks up, if oil goes below $100 dollars a few more mergers may occur.

 

[JT12345]

I think the Alaska/Airtran merger is a good one. It would be even better if Airtran served some Northeast Canadian cities while Alaska serves the Northwest. With the U.S. dollar weakened, and Airtran with no International feed, Airtran is weakened also.

 

[Ex737Driver]

Um, what Intl does ALK have?

 

[Eagle757shark]

Um, what Intl does ALK have?

He is referring to the destinations in Mexico and Canada as Alaska's international destinations. AirTran has no international destinations.