It’s been a bumpy few weeks for airline stocks after the Department of Justice challenged AMR Corp.’s (AAMRQ) merger with U.S. Airways (LCC), calling into question not just the consolidation thesis that had boosted airlines recently but also AMR’s future.
for The Wall Street Journal (Kevin Hagen for The Wall Street Journal) Today, however, the airline industry got some good news that had nothing to do with that litigation: Delta Air Lines (DAL) is set to join the Standard & Poor’s 500-stock index. Now, we all know that an addition to the index is not meant to be a recommendation, but with index funds and index huggers, alike, being forced to buy its shares, Delta’s stock has surged today.
Delta is up 6.9% to $21.26 today–and giving the rest of the industry a boost. U.S. Airways has climbed 3% to $17.30, United Airlines Continental (UAL) has risen 3% to $30.62 and Alaska Air (ALK) has advanced 1.5% to $58.26.
Shares of the Atlanta-based airline will replace those of BMC Software, which is being purchased by Bain Capital.
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