Merger talks boost airlines’ stock prices

MINNEAPOLIS (AP) — News that United Airlines and US Airways are in talks about combining was met with approval by shareholders and analysts Thursday.

Passengers may feel differently, however, if a combination ends up leading to higher airfares.

Shares of both companies rose in morning trading. US Airways gained 83 cents, or 12.2 percent, to $7.65, and United Airlines parent UAL Corp. rose $1.38, or 7.3 percent, to $20.33.

News that two airlines are talking broke Wednesday afternoon. Both carriers have tried for combinations in the past. United Chairman and CEO Glenn Tilton and US Airways Chairman and CEO Doug Parker were both involved when their companies talked about a tie-up in 2008. They walked away then citing high fuel prices, but didn’t rule out a future deal.

Tags: us business, united airlines, us airways, business, airline, stocks, merger