Top airline stalks stumble after big gains by the end of 2013

Published on : Monday, December 30, 2013

generic-plane-300x168Many Airlines started off with gusto in the beginning of this year but the stocks have been on fire in the recent months. However there are many airlines that are performing well but a few big names need to rethink better strategies to make bigger benefits and differences in the airlines.

IBD’s Transportation-Airline group has flown more than 70% higher this year, but sellers were in the group Friday. It was the worst performer out of 197 groups tracked by IBD, down 3.4% at one point. Institutional selling isn’t hitting the group in spades, but big sellers were around during the week ended Dec. 6 when the group slumped 4% in higher volume.

Still, optimism abounds for the industry in 2014. Earlier this month, the International Air Transport Association predicted record earnings for the global airline industry thanks to lower jet fuel prices, more passengers and higher fees.

Names in the group that recently fell below their 10-week moving averages include Alaska Air (ALK), Delta Airlines (DAL) and Allegiant Travel (ALGT).

Meanwhile, fast-growing Spirit Airlines (SAVE) is threatening a break below its 10-week line after clearing a cup-with-handle base in October.

Irish airline Ryanair Holdings (RYAAY) continues to face resistance at its 10-week line after gapping below the support level in early November.

There are some bright spots. Panamanian airline Copa Holdings (CPA) continues to hold above support, although it hasn’t made much progress after a recent flat-base breakout over 156.53.

American Airlines (AAL), meanwhile, is also holding above support with an Accumulation/Distribution Rating of A-. Shares soared 16% during the week ended Dec. 13 after its merger with US Airways was completed.

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