Hundred dollar oil - LCCs and network airlines face up differently
Oil prices hit USD100 for the first time yesterday in New York
trading. The psychological barrier was touched; market feeling is that prices
will head higher in the short term.
Faced with this and other discouraging indicators, US airline
stocks fell to their lowest level in 12 months, according to Amex’s Airline
Index. The major airlines’ stock prices fell by around 2.5% for the day.
US Airways was down 4.4%. But share prices of US LCCs, Southwest, AirTran, Alaska
Air and JetBlue have so far held up reasonably well. [450 words]