Jim Corridore, analyst at Standard & Poors Equity Research raised his opinion on UAL (UAUA) from hold to buy:

1. UAUA is cutting 100 aircraft, and 2009 capacity will be down 17%-18% and Corridore believes it is near the level needed to get yields up enough to suit this oil price environment.

2. He believes oil could drop from current levels.

3. He expects unit costs to rise on lowered capacity in the short term, but expect the capacity cuts to help revenue growth in 2009.

4. 12-month target price is $12.

Personally, I don’t think I would put too much faith in the Airline industry; it is a horrible business (high capital costs, and low returns).  If oil prices drop substantially, the stocks will go up, but I would rather bet elsewhere for the time being.

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http://www.trackthepros.com/categories.php?category_id=382