The Next Big Airline Merger?

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Today, analyst Brendan Byrnes discusses a potential merger from American Airlines parent company AMR. Although the company still plans to explore remaining independent, it recently said that it will consider mergers and restructuring options. US Airways, which has publicly stated its desire for merging with American, is the most likely choice for a partner and is already beginning to lay the groundwork. The industry overall has seen a lot of mergers recently, and US Airways investors cheered this possibility heartily ever since rumors emerged. Still, this remains a very difficult industry for investors. Watch the video below to see why Brendan thinks long-term investors should stay away from the industry.

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Brendan Byrnes has no positions in the stocks mentioned above. The Motley Fool owns shares of Southwest Airlines. Motley Fool newsletter services recommend Southwest Airlines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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