Airline Industry Weighed Down by Government Regulation

The Paragon Report Provides Equity Research on United Continental & Southwest Airlines

Marketwired

NEW YORK, NY--(Marketwire -01/16/12)- After struggled for most of 2011, analysts argue the Airline industry could be in for more difficulties this year. International Air Transport Association (IATA) says that airlines are expected to generate overall profits of $3.5 billion in 2012, down from the estimated $6.9 billion in 2011 and $16 billion in 2010. A recent press release issued by Sabre Airline Solutions argues that government regulation regarding airport security, emissions and taxes is one of top issues negatively impacting global airlines' revenues over the next 18 months. The Paragon Report examines investing opportunities in the Airlines industry and provides Stock research on United Continental Holdings (NYSE: UAL - News) and Southwest Airlines Company (NYSE: LUV - News). Access to the full company reports can be found at:

www.paragonreport.com/UAL

www.paragonreport.com/LUV

One of the top headlines of 2011 in the airlines industry was the bankruptcy filing of American Airlines' parent company, AMR Corporation. Jamie Baker, an airline analyst with J.P Morgan, argues that the Chapter 11 filing by AMR will lead to further shrinkage of what was once the nation's largest airline.

According to a report from Investopedia, bankruptcy filings by American's competitors "have helped them become more cost effective." United cut overall expenses by $7 billion, while Delta Airlines, which filed for bankruptcy in 2005, reduced its fleet size by 11 percent, employees by 17 percent and terminated its pension plans for pilots.

The Paragon Report provides investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Airline industry register with us free at www.paragonreport.com and get exclusive access to our numerous stock reports and industry newsletters.

Last week The Wall Street Journal reported that Delta Airlines, US Airways Group Inc. and private-equity firm TPG Capital are separately assessing possible bids for AMR Corporation, with hopes "that AMR's troubles present another opportunity for airline consolidation," the Journal reports.

After its merger with Northwest Airlines in 2008, Delta became the world's largest carrier by traffic, though it was later eclipsed when United Airlines merged with Continental to become America's number one airline.

The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.paragonreport.com/disclaimer

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