United, AirTran, FedEx, Allegiant, Continental lose as oil prices sneak up - Stock Wrap
United (-2.9%), AirTran (-3.7%), FedEx (-2.1%), Allegiant (-2.2%) and Continental (-2.1%) led the market down on Friday 17-Jul-09. Only Hawaiian (+1.3%), COPA (+1.2%) and American (+0.9%) drifted gently upwards. FedEx had gained strongly on the previous day, so the carrier’s stock fall still left it up around 5% over previous levels.
Despite a further positive day where the Dow Jones Index rose 0.4% – albeit mixed – following a strong week, most airline stocks fell, seeming more moved by continuing threats of higher oil prices. Nymex crude prices for Aug-2009 delivery increased 2.5%, to USD63.56 on the day.
Again, the “good news” of possible economic recovery – while airlines are cutting back and seeing yields still decline – is about the worst possible news the industry could hope for, if it brings with it higher oil prices.
North & South America selected airlines daily share price movements (% change): 17-Jul-09
Source: Centre for Asia Pacific Aviation & Yahoo! Finance