Continental, United Airlines and Delta plunge in airline sell-off – Stock Wrap
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