Airline shares tumble on oil price rise
CHICAGO (Reuters) - U.S. airline shares tumbled on Thursday as the price of oil -- directly related to the price of jet fuel -- extended sharp gains.
US Airways Group (LCC.N) stock led the decline, falling over 9 percent in afternoon trade. The Amex airline index .XAL was down 5.47 percent late in the session.
"I would say it's oil," said Standard & Poor's airline analyst Jim Corridore. He also noted signs of softness in the U.S. economy that some experts believe will weigh on travel demand.
The airline industry has been battered in recent months by persistently high oil prices. Nymex crude oil was trading at more than $105 a barrel on Thursday. Carriers are struggling to offset that expense through fare hikes and fuel surcharges.
US Airways shares were down 9.4 percent at $11.56 on the New York Stock Exchange. American Airlines parent AMR Corp's (AMR.N) shares were down 8.2 percent at $11.83, and Continental Airlines Inc (CAL.N) shares were down 6.4 percent at $24.03.
