Business | Aviation
Airline stocks jump on fall in oil price
Airline shares defied the broader stock market on Friday vaulting higher as the price of oil, which influences the price of jet fuel, tumbled nearly 6 per cent.
- Agencies
- Published: 18:54 October 10, 2008
Chicago: Airline shares defied the broader stock market on Friday vaulting higher as the price of oil, which influences the price of jet fuel, tumbled nearly 6 per cent.
Shares of United Airlines parent UAL Corp led the rally, gaining 8.04 per cent to $5.78 on Nasdaq. American Airlines parent AMR Corp was up 7.8 percent at $7.19 on the New York Stock Exchange.
The Amex airline index gained 2.59 percent, but the Dow Jones industrial average fell nearly 3 percent.
"Looks like it's finally reattached itself to changes in oil price movement," said Ray Neidl, airline analyst at Calyon Securities. "I take that as a slight positive because oil prices are moving down."
The airline industry has been severely battered this year by high fuel prices. As a result, carriers are rapidly downsizing to offset that expense.
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