Airline Stocks Take Off Despite Travel Alert Over Bin Laden's Death

Despite the U.S. State Department issuing a travel alert Sunday following the killing of infamous terrorist Osama Bin Laden, Wall Street analysts expect airline stocks to continue their upward ride Monday.

Airline shares, which have faced strong headwinds thanks to months of rising fuel price that forced carriers to raise fares, started to edge higher in the past month. Analyst Helane Becker of Dahlman Rose & Co. expects them to rise further on Monday with oil prices heading downward in the wake of Bin Laden's death.

"I expect airline stocks to react favorably to oil prices, even with the travel alert," Becker says. "Overall, I expect oil prices will carry the day."

And indeed, in early trading Monday, a number of airline stocks were up, including United (UAL) up 4.65% to $23.87; U.S. Airways Group (LCC), up 2.42% to $9.31; American parent AMR (AMR), up 3.59% to $6.08; and Delta Air Lines (DAL), up 3.08% to $10.70.

Becker notes that travel alerts based on concerns about terrorism generally don't stop Americans from going abroad, unless something happens in the region they were planning to visit. For example, the bombing of a London subway might taper travel to the United Kingdom, but it won't affect travel to Korea. And since 2001, Becker notes, the U.S. has had a worldwide travel alert out. With the death of Bin Laden, the government increased it to a high alert.

In its most recent worldwide alert, the State Department says:
The U.S. Department of State alerts U.S. citizens traveling and residing abroad to the enhanced potential for anti-American violence given recent counter-terrorism activity in Pakistan. Given the uncertainty and volatility of the current situation, U.S. citizens in areas where recent events could cause anti-American violence are strongly urged to limit their travel outside of their homes and hotels and avoid mass gatherings and demonstrations.
The travel alert is slated to expire on Aug. 1.

Airfare hikes, however, have a much greater affect on travel and, as a result, airlines stocks, Becker adds.

"Airfares have risen 40% to 100% in the last four months, and Americans have suffered from sticker-price shock," she says.

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It does not matter that OBL is dead, Obama is still in the white house. America does not stand a chance of recovery as long as Obama is president.

May 03 2011 at 10:45 PM Report abuse +3 rate up rate down Reply

Where are my sheep Susie? I see jimmy has changed his sn again. Jimmy if you will post a racist comment in the next hour, I will send you a picture of ackmeds goat.

May 03 2011 at 9:47 PM Report abuse +10 rate up rate down Reply

Liar was here earlier but he's mourning the death of his leader.

May 03 2011 at 9:43 PM Report abuse +11 rate up rate down Reply

H E L L O..............Where are all the looney libs?

May 03 2011 at 9:33 PM Report abuse +12 rate up rate down Reply

"That's not really fair..."

TISSUE? Perhaps a fresh maxi-pad, some Masingale and a Midol?

WAAAAAAAAHHHHHHHH!!!!!!!!!!!!! F-ing loser! F-ing whiner!!!

LMMFAO! And a full blown Chucklegasm!!!! What a whimpy little whiny suka!

My God... your mommy must be proud... Oh... sorry... your mommy is dead huh?

It's better that way to save her from the embarrassment of what you've become!

May 03 2011 at 9:23 PM Report abuse +14 rate up rate down Reply

WOW! Just popped back to see if anything is happening and see how much that so many seem to believe that a certain sub-human is a POS. SHEESH.... I bet even Osama Bin Laden would have had more support. Chuckles!

May 03 2011 at 8:01 PM Report abuse +9 rate up rate down Reply

Looks like the board is catching rigamortis?

May 03 2011 at 7:02 PM Report abuse +10 rate up rate down Reply

Well, enough of making fun of a pathetic old man desperately seeking his dead mommy's affection thru surrogates on the internet....

I want to send a BIG THANKS to all my little brothers at DEVGRU! Well done!!! Return safe to Dam Neck!!!!!!!!

May 03 2011 at 6:56 PM Report abuse +10 rate up rate down Reply

tsgarpirving-posted that I don't read well. FYI: I don't read at all. IE: healtcare bill. Thanks for pointing that out dear.

May 03 2011 at 6:56 PM Report abuse +10 rate up rate down Reply
1 reply to mrspelosi's comment


May 03 2011 at 6:56 PM Report abuse +6 rate up rate down Reply

jimlatp03............... So, how did you manage to afford a new computer after your divorce? Please don't tell us it's a Rent-A-Center thing!

May 03 2011 at 6:52 PM Report abuse +9 rate up rate down Reply