Calyon Upgrade Gives Airlines a Boost (AMR, DAL, NWA, more..)

Despite crude oil prices which are rising this morning, airline stocks are feeling a boost on the back of a positive note from Calyon Securities. The firm raised its rating on the airline sector following a reduction in its crude oil price forecast for '09 from $96.50 to $71.50.

Calyon upgraded seven major airline companies from Neutral to Add, citing lower crude oil prices and capacity reduction initiatives across the board:

• AMR Corp. (NYSE: AMR) with an $18 price target
  
• Delta (NYSE: DAL) with a $12 price target
  
• Northwest (NYSE: NWA) with a $15 price target
  
• UAL Corp. (Nasdaq: UAUA) $with a $22 price target
  
• Continental (NYSE: CAL) with a $32 price target
  
• US Airways (NYSE: LCC) with a $17 price target
  
• Alaska Air (NYSE: ALK) with a $38 price target

With the major indices now backing off their session highs, the majority of the airline stocks appear to be holding onto their gains. AMR stock is currently up 0.6%, Delta is down 1%, Northwest is down 0.4%, UAL is up 0.5%, Continental is up 1.7%, US Airways is up 3.8%, and Alaska Air is up 4.3%.

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