Reply #51: Sector Snap: Airline Stocks Tumble

[citizen snips]

NEW YORK (AP) -- Airline shares in the United States stumbled Monday, stung by rebounding crude oil prices.

The Amex Airline Index fell 2.7 percent, with all 11 of its component stocks declining. Hurting shares was a barrel of oil jumping $1.01 to $53 on the New York Mercantile Exchange, as jet fuel is one of an airline's top two costs.

The airline index had been climbing to new 52-week highs in recent weeks on the back of easing oil prices, which briefly dipped below $50 per barrel last week.

The resurgent oil prices dampened any enthusiasm for recent fare increases implemented by large network carriers. Hub-and-spoke airlines over the weekend matched a $5 one-way increase set by United Airlines, JP Morgan analyst Jamie Baker wrote in a research note.

more...
http://biz.yahoo.com/ap/070122/airlines_sector_snap.html?.v=1