US airline stocks were hammered on Monday, as Wall Street endured its largest points drop since April on renewed fears about the economic recovery. Oil prices slumped by almost 4% in New York to below USD67 per barrel, while the US dollar and Japanese yen strengthened in a flight to safe havens.
The World Bank cut its estimate of global GDP growth again to -2.9% for 2009, and 2% growth in 2010.
Airlines stocks were dumped, with Hawaiian (-11.7%), Continental (-9.2%), United Airlines (-7.3%) and Delta Air Lines (-6.9%) faring the worst. Canada’s WestJet (-2.3%) and Air Canada (-2.0%) were relatively unscathed.
The falls coincided with a new report from the Air Transport Association of America (ATA) showing US airline yields collapsed further in May-2009.
North & South America selected airlines daily share price movements (% change): 22-Jun-09