We analyze the hp-version of the streamline-diffusion finite element method
(SDFEM) and of the discontinuous Galerkin finite element method (DGFEM) fo
r first-order linear hyperbolic problems. For both methods, we derive new e
rror estimates on general finite element meshes which are sharp in the mesh
-width h and in the spectral order p of the method, assuming that the stabi
lization parameter is O(h/p). For piecewise analytic solutions, exponential
convergence is established on quadrilateral meshes. For the DGFEM we admit
very general irregular meshes and for the SDFEM we allow meshes which cont
ain hanging nodes. Numerical experiments confirm the theoretical results.