US Airline stocks drop, as crude oil prices soar highest since 2008

By on Apr 9, 2011 in Business, Stock Market, United States Comments

The Airline stocks in the US dropped hard and this is due to high price of crude oil, which went up to more than $112 per barrel, apparently the first time since 2008.

As reported at Bloomberg on Saturday, April 9, 2011, United Continental Holdings Inc. and AMR Corporation are only among those airlines parent with stocks greatly affected with the record high of $112.79 per barrel, or 2.3% increase.

As of 4:15 p.m. on Friday at the New York Stock Exchange composite trading, United dropped by $1.21, or 5.8%, to $19.79; while AMR fell by 27 cents, or 4.5%, to $5.77.

“The bad news is that we’re now faced with another fuel crisis,” AMR CEO Gerard Arpey was quoted as saying.

“To the extent that oil dampens economic growth, we are all very worried about what is happening in oil markets.” Mr. Arpey added.

According to Wall Street Cheatsheet, Delta Air Lines declined by to nearly 4%, JetBlue slid by 5%; US Airways down by 3.5%; Alaska Air fell by 3.5%; while Southwest Airlines and AirTran Holdings both with less than 1% drop.

Analysts say they believe that the crude oil price hike may only rebound after the crisis in Libya will finally end, in which recent reports said that Libyan leader Muammar Gaddafi is now open to hear peace proposal from Turkey.

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