AMR (NYSE:AMR), Delta (NYSE:DAL), UAL (NYSE:UAL) Top Barclays US Airline Picks

Barclays is fairly upbeat about the U.S. airline industry, and their top picks in the sector remain AMR Corp (NYSE:AMR), Delta (NYSE:DAL) and UAL Corp (NYSE:UAL).

Barclays said, "Airlines should begin reporting December RASM this week. We expect to see deceleration in year-over-year compares given substantially tougher comps from last year, but underlying trends remain very encouraging. The storm in late December will probably dent earnings for the quarter, but it is unclear what impact it will have on RASM; for now we assume a neutral impact. Storm recovery wasn't the only thing on the industry's mind late in December. Fare initiatives continued with the industry intent on recovering a rising fuel burden in 2011. We believe excessive focus on near-term fuel movement is a mistake and would take advantage of any share price weakness it creates. Favorites remain AMR Corp, Delta and UAL Corp."

AMR closed Tuesday at $8.10, up $0.18, or 2.27 percent. Delta closed at $12.53, down $0.05, or 0.40 percent. UAL closed at $25.53, gaining $0.40, or 1.59 percent.