Revised to reflect afternoon share prices and US Airways share price leadership.CHARLOTTE, N.C. ( TheStreet) -- Shares in US Airways ( LCC) were leading airline stock prices higher Thursday,reflecting the carrier's unhedged position as oil prices fall, combined with continuing merger speculation. Most airline shares were rising after three analysts this week upgraded the entire airline industry, which is a beneficiary of falling oil prices, continuing strong demand, industrywide capacity discipline, and ancillary revenues -- mainly from bag fees -- that total about $1 billion annually at the big three airlines and $500 million annually at US Airways.
Becker has buys on Alaska, Delta, Southwest, Spirit ( SAVE - Get Report) and United and holds on JetBlue and US Airways, which has said it is pursuing a merger with bankrupt AMR. ( AAMRQ.PK) Engel, meanwhile, wrote that "many airline stocks have more than 50% upside potential over the next year." His top pick is Delta, with a $15 price target. -- Written by Ted Reed in Charlotte, N.C. >To contact the writer of this article, click here: Ted Reed >To follow the writer on Twitter, go to http://twitter.com/tedreednc.