U.S. airlines stabilizing, says analyst

U.S. airlines have gone through years of cost cutting and now may be heading for a rally, particularly among the legacy carriers, says Ray Neidl, a well-known airline industry analyst from Calyon Securities.

Neidl, who two years ago spoke at the International Flight Services Association conference in Tampa, said in a Market Scan online column by R.M. Schneiderman that poor winter weather and a spike in oil prices led to greater than expected industry losses, but earnings should climb in the second and third quarters. Neidl said 2007 could be a “solid year for airline profitability.”