US Airways Group, Inc. (LCC), AMR Corporation (AAMRQ): If The Merger Goes Through

It does have a few positives, though. The stock is relatively cheap, with a price-to-earnings ratio of 5, and the company booked more than $240 million in free cash flow at the end of last year.

On the whole, US Air also might be a stock to stay away from, unless you are a value investor and think it’s a great bargin. However, you might want to wait until its future plans get cleared up later this year.

Conclusion

If the merger is nixed, it leaves the two companies trying to pick up the pieces and move on — and in AMR’s case, its future path looks deeply uncertain. Investors should hope that the DOJ’s bid fails, and that the merger can proceed as planned.

The article Airline Merger In Holding Pattern originally appeared on Fool.com and is written by Mark Morelli.

Mark Morelli has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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