NEW YORK (TheStreet) -- Airline stocks are flying on the news AMR Corporation (AAMRQ) and US Airways' (LCC) proposed merger has been cleared for landing. United Continental (UAL), Delta Air Lines (DAL), JetBlue (JBLU), Alaska Air Group (ALK) and Southwest Airlines (LUV) popped on the news.
Shares of AMR Corporation, listed over-the-counter, gained 18% to $11.23, while US Airways dropped 1.2% to $22.99.
By early afternoon, JetBlue soared 4.6% to $8.05, United Continental rose 2.6% to $36.21, Delta was up 1.9% to $27.99, Alaska Air climbed 2% to $74.79 and SouthWest added 1.1% to $18.
The AMR-US Airways deal was stalled after the U.S. Department of Justice opposed it on the grounds a merger would reduce competition, increase airfare prices and create a monopoly in the industry.
Under the agreement, the two airlines are required to divest 52 slot pairs at Washington Reagan National Airport and 17 slot pairs at New York LaGuardia Airport.
TheStreet Ratings team rates US Airways Group Inc as a Buy with a ratings score of B. The team has this to say about their recommendation:
"We rate US Airways Group Inc (LCC) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."