Airline Stocks Rallying Amid FAA's Aerospace Forecast (ALK, AMR, UAUA, DAL, more)

Shares in the airline sector are soaring today amid an FAA release on its Aerospace Forecast for FY10 - FY30.

The FAA sees aviation continuing to grow long term, despite current global economic conditions.
They see current conditions as just a blip in the system, with airlines having overcome such trials as 9/11, "the bankruptcy of four network carriers, record high fuel prices, the most serious economic downturn since the Great Depression, and heightened concerns about a pandemic that turned into reality in 2009."

As for the near-term, the agency sees lackluster activity.

Additionally, growth for the long-term will not be the same as previously forecasted by the FAA. The biggest factor for the dampened rebound is the erosion of wealth caused by the Great Recession. The recession also led to double-digit levels of unemployment, declining corporate travel budgets, and tightening of belts among consumers, all contributing to a softer demand for air travel.

The FAA sees available seat miles (ASMs) -- the overall best business measure for international and domestic activity -- dropping 1.6% this year, and then growing at an average rate of 3.6% through 2030.

Airlines are popping today amid the report; Alaska Air (NYSE: ALK) is leading the way, now up 5.32% to $39.98. Others of mention are:

• AMR Corporation (NYSE: AMR) up 4.61% to $10.22;
  
• UAL Corporation (NASDAQ: UAUA) up 4.52% to $18.98;
  
• Delta Air Lines Inc. (NYSE: DAL) up 3.04% to $13.20;
  
• Continental Airlines, Inc. (NYSE: CAL) up 4.20% to $22.08; and
  
• US Airways Group, Inc. (NYSE: LCC) up 3.37% to $7.97.

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