The Next Big Airline Merger?

Today, analyst Brendan Byrnes discusses a potential merger from American Airlines parent company AMR. Although the company still plans to explore remaining independent, it recently said that it will consider mergers and restructuring options. US Airways, which has publicly stated its desire for merging with American, is the most likely choice for a partner and is already beginning to lay the groundwork. The industry overall has seen a lot of mergers recently, and US Airways investors cheered this possibility heartily ever since rumors emerged. Still, this remains a very difficult industry for investors. Watch the video below to see why Brendan thinks long-term investors should stay away from the industry.

Airlines might not be the best place for your money right now, but that doesn't mean there aren't tremendous opportunities elsewhere in the market. In fact, our chief investment officer has picked out his top stock for the year, one with so much promise we've dubbed it: "The Motley Fool's Top Stock for 2012." To access the report before the rest of the market catches on, click here -- it's absolutely free.

Brendan Byrnes has no positions in the stocks mentioned above. The Motley Fool owns shares of Southwest Airlines. Motley Fool newsletter services recommend Southwest Airlines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (2) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 13, 2012, at 3:13 PM, mwwestiii wrote:

    Motley Fool still giving investment advice by looking in the rear view mirror and this is why you missed the best performing stock in the market.

    LCC is still dramatically undervalued to it's peers yet you tell people to sit back and watch. Why are you even giving advice on airlines?

    Prepare for a blowout Q2 and 20 per share is just around the corner.

  • Report this Comment On July 13, 2012, at 3:14 PM, mwwestiii wrote:

    Motley Fool still giving investment advice by looking in the rear view mirror and this is why you missed the best performing stock in the market.

    LCC is still dramatically undervalued to it's peers yet you tell people to sit back and watch. Why are you even giving advice on airlines?

    Prepare for a blowout Q2 and 20 per share is just around the corner.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1943325, ~/Articles/ArticleHandler.aspx, 9/2/2014 10:34:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement