UPDATE 1-U.S. airlines shares plunge on oil, economy

(Updates share prices; adds analyst comment)

NEW YORK, Jan 8 (Reuters) - The shares of major U.S. airlines plunged to new lows on Tuesday, led by a 15 percent fall by United Airlines parent UAL Corp (UAUA.O), as high oil prices and economic gloom soured investor sentiment.

"The general view on the sector has deteriorated, with concerns over the economy," said Brian Nelson, an airline equities analyst with Morningstar.

Oil prices CLc1, hovering near record levels, rose 1.9 percent on Tuesday to $96.90.

"These legacy carriers are ultra-sensitive to daily changes in crude oil because they're largely unhedged," said Nelson.

The recent run-up in oil prices has pushed the price of jet fuel JET-USG, which vies with labor as an airline's biggest expense, to near its highest levels in more than two years.

Some of the airline stocks have fallen so far they are trading at less than the per-share value of cash on their balance sheets.

"It's unbelievable," said Calyon Securities analyst Ray Neidl.

In afternoon trading, the Amex airline index .XAL was down 6.46 percent.

UAL fell $4.51 to $24.67. AMR Corp (AMR.N), parent of the world's largest carrier, American Airlines, fell 10.08 percent to $11.95. No. 3 U.S. carrier Delta Air Lines Inc (DAL.N) dropped 12.4 percent to $11.73 and Continental Airlines Inc (CAL.N) tumbled 10.87 percent to $18.12.

AMR, UAL, Delta and Continental all marked new 12-month lows in the course of trading on Tuesday.

(Reporting by Chris Reiter and Kyle Peterson; Editing by Andre Grenon)

((chris.reiter@reuters.com +1 646 223 6116; Reuters Messaging: chris.reiter.reuters.com@reuters.net)) Keywords: AIRLINES/SHARES

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