Will US Airways (LCC) shares keep moving higher?

US Airways Group, Inc.  (Public, NYSE:LCC) shares jumped 20%, moving $1.46 today on analyst upgrade and buzz about a merger with United Airlines.  So all we care about is at $8.62 a share, can LCC keep going?

Here's the deal, "sources" told Reuters and The Associated Press a deal between US Airways and United could be finalized within a couple of weeks.

Tonight Valerie Wunder, spokeswoman for US Airways said: "We cannot comment on speculation or rumors."

However Masters, this isn't the 1st time the two airline companies have tried a merger. In 2000, US Airways and United tried to merge, but the deal was eventually blocked by the U.S. Department of Justice. US Airways Chief Executive Doug Parker has done little to calm speculation regarding a new attempt at a merger.

But now with airlines companies dropping left and right, jet fuel at an all time high, and investors bailing from airline stocks, this merger could happen.

US Airways is ripe for the picking, the chart does not lie:

Bottom line, US Airways Group, Inc.  (Public, NYSE:LCC) shares can go higher.

A combined United-US Airways would jockey with the newly proposed Delta-Northwest for bragging rights as No. 1, dropping AMR Corp. (nyse: AMR)'s American Airlines from first to third if both deals are approved.

Based on 2007 passenger traffic, United-US Airways would have a slight edge with 201.6 billion revenue passenger miles to 200.4 billion for Delta-Northwest. But the competition is too close to call in light of recent capacity cuts.

This could all be wrapped up in a few weeks, so chances are, LCC shares will fall before they spike once more.  Take a chance under $8, but it if goes past $9, forget about it.

Happy Investing Masters.

Disclaimer: The Author has no positions in the securities mentioned in this publication.