Now that the merger between Delta and Northwest Seems Imminent, what do you think is going to happen to the Companies involved? Furthermore, what do you think this will do to the industry as a whole?

I know many people cringe when people talk about airlines, but with 3-4 airlines filing for bankruptcy in the last few weeks, its either sink of swim for this two.  If they merge, they will cut costs and have improved margins and be in a better position to compete with the major US airlines.  This, I believe will be good for everyone (except the people flying on the airlines).  They will have less competition, which will allow them to raise prices across the board and try to turn a profit (that probably wont happen).

I strongly believe that they will merge.. sources close to the deal say as soon as tomorrow, I think Tuesday will be more likely.  Some news reports have said that Delta is so despite to merge with NW that there was mention of going forward without the authorization of the pilots union. 

I think this stock, for the short term, its good for 12.75 - 13.00 bucks. (if the merger becomes reality)  For me, that was reason enough to rent a substantial position.

One thing though, if the stock does jump.. Watch it closely, and when they report earnings (losses) on 4/23/2008.  Expected losses are .37/share.  From .03/share a year ago.

I still can't see myself getting excited over investing in airlines with old jets and huge pension obligations.  Add in a slow economy (less spending) and higher oil prices, which will directly affect the bottom line.   I'd be impressed if they just stay out of bankrupcty for a few years.

I think you misunderstood what I said.  Im going to rent.  Dont plan on owning it for more than a day for two.. For a quick profit.  I too am not excited about the long prospect of the deal, but the short term - I am

NWA should jump to around 13.75.

Wow.. I got beat up on this today.. Had the exact opposite move.. Likely due to oil, But i cut my losses and sold.  Not happy to lose, but i'd rather lose some than all.. and put my money to work in something else.  I took a hit of ~12%  First loss of the year though.

I wouldn't own an airline right now for nothing.  I have learned my lesson with JetBlue.  Soon as we start refining more oil, drilling for more oil, etc. etc., the airlines are going to suck for investing.

Ok, ok I know oil is high and we don't like airlines. BUT I am considering buying NWA and/ or DAL while they are low. As Norm brought up oil sucks for the airlines but one thing unknown to the general public is that airlines are going to ease off the throttle and fly just a few minutes slower. Most flights it will take around 5 minutes longer to fly and with that it can save around 500 dollars a flight which will then saves tens of millions of dollars. I don't know if this means I should grab up shares while this is pretty unknown to the public or if this will make a difference at all? I am a student in the Flight Operations/ Aviation Management field and this is what I am hearing. What are everyone else's take on NWA DAL and airlines in general?

Airlines suck..... point out an airline that is up signifcantly over the past year and that is profitable!i  saw this thing IPO and i was like....why???? sure if they kept their old ticker symbol and didnt change it to get more money i would have gladly waited it out for 2 cents a share on 1000 shares :) I dont get why anyone trades the airlines.

Andy, I would short the airlines (if I knew how to do that). But obviously you know more about flying, and I think you should always invest in what you know. Airlines lines could be a really looooong term play, but still a good one . . . .

The S&P just released some more bad news about the airlines. I don't think I will jump in quite yet. Like emobrien brought up I think the next few days might be a good chance to short.

I am going to continue to watch NWA closely and find a point to pull the trigger. I do think airlines are a long play, but there are ten year cycles, up then down then up then down ect. Right now we are in the down portion which would create a good chance to jump in. I really feel like getting in, it just looks so good (I like to buy when I stock when there is bad news and it is down and sell on good news when it is high, it only makes sense!) and like I said the airlines have a few tricks behind the curtain they will be using to save gas. (Although the longer flight will make passengers even more angry, which I reply, would you rather pay lots more money or take an extra 10 minutes to enjoy your wonderful flight?)

My point being, had I not been watching ITI, DIS, DISCA, and whatever else comes up on my mind, I would probably be a proud/ not-so-proud owner of NWA.

Back when i first posted this, I thoought the merger would be a good catalyst for a trade on both NWA and DAL.  Well, that was my first loss of the year - I failed to think about the oil situation when I was thinking abot this trade.  Well, If you believe what some people on the street are say about oil right now.  DAL NWA and others may be good.  They are hinting at a large sell off if oil trades below 120.  If you think this would be good for the airlines for a few points, it may be good. But, oil could swing the other way and you could get crushed.. You'd pretty much be shorting oil indirectly.  Southwest is one of the only airlines not being hurt too much right now, they are hedged at nearly 58 bucks/barrel.  Not too bad, but what will this be.  A long to short trade?  I too am watching these two stocks. 

Yesterday on Fast Money they had the CEO of Southwest Airlines (LUV) on. Apparently they've hedged a lot more oil than the other airlines and aren't sweating the price of gas. It made my ears perk up . . .

emobrien:

Yesterday on Fast Money they had the CEO of Southwest Airlines (LUV) on. Apparently they've hedged a lot more oil than the other airlines and aren't sweating the price of gas. It made my ears perk up . . .

I think it would be a better trade to be short LUV if oil falls as they wont have anything to gain.  They already have their fuel.  Non hedged companies stand much more to gain when oil falls (if it does)