AMR (NYSE:AMR), Delta (NYSE:DAL), United Continental (NYSE:UAL), Barclays' (NYSE:BCS) Favorite Airlines

Commenting on the airline sector, Barclays (NYSE:BCS) said they see pensions having less effect on the airlines going forward, and keep their favorites - AMR (NYSE:AMR), Delta (NYSE:DAL) and United Continental (NYSE:UAL).

Barclays said, "Market focus in airlines has been predominantly on revenue and fuel, but as 2011 approaches, we expect much more focus on the cost outlook. While many airlines still have degrees of pension exposure, our analysis suggests that pension expense pressure is unlikely to be material to the earnings expansion story we envision for 2011. Favorites remain AMR Corp, Delta, and United Continental.

"While bankruptcies and near-bankruptcies have reduced pension exposure within the industry, Alaska Air (NYSE:ALK), AMR, DAL, and UAL (through the Continental acquisition) have remaining exposures.

"Of those exposed, our analysis suggests that AMR has the most exposure with a mere 0.10% of revenue incrementally during 2011. UAL has the least with less than 1 bps of its 2011 revenue.

"Given current capacity expectations and revenue dynamics, we continue to see earnings expansion potential in 2011 despite higher fuel prices and headwinds from pension."

AMR closed Friday at $7.97, up $0.01, or 0.19 percent. Delta closed at $13.02, down $0.29, or 2.18 percent. United Continental ended the day at $26.10, down $0.05, or 0.19 percent.