US Airways Keeps Rising but Outlook Dim for Deal Next Week
Tickers in this article: AAMRQ.PK LCC  CHARLOTTE, N.C.
(TheStreet) -- AMR (AAMRQ.PK) CEO Tom Horton once asked, "What's
in the water in Phoenix?" when he discussed US Airways (LCC)
aspirations to merge with his airline.  Whatever it is,
investors seem to be imbibing large quantities.  US Airways
shares rose 159% in 2012, starting the year at $5.20 and ending
up at $13.50. That easily beat the Amex Airline Index (XAL) ,
which rose 36%, besting the S&P 500's gain of 13.4%.  In 2013,
US Airways shares are rising again. In mid-afternoon trading
Friday, shares were up nearly 6% to $14.45. Since Wednesday
morning, when trading for the year began, the shares have gained
5%.  Gains are being fed by expectations that a merger with AMR
will be announced shortly, although the broadly held
expectations regarding a Jan. 9 announcement have dissipated,
due to a wide variety of unresolved matters including labor
issues -- especially pilot issues. Both the U.S. Airl