Airline stocks rally as oil prices retreat
CHICAGO (Reuters) - U.S. airline shares were broadly higher on Thursday as oil prices -- directly linked to the price of jet fuel -- retreated from a record high above $135 a barrel.
American Airlines parent AMR Corp <AMR.N> posted the sharpest gain, rallying more than 9 percent. AMR's jump outpaced a 3 percent rise in the Amex airline index <.XAL>. Nymex crude oil <CLc1> was down 96 cents to $132.21 a barrel.
Standard & Poor's equity analyst Jim Corridore said the jump in airline shares was simply a rebound on the heels of Wednesday's sell-off.
The pain in the airline industry was underscored on Wednesday by news that American Airlines would cut domestic capacity by as much as 12 percent and begin charging a $15 fee to check a single bag.
"I think they're pulling all the levers they can," Corridore said. "They are sending a message to consumers that things are dire, and I do think that consumers need to get that message."
AMR shares were up 9.16 percent at $6.79 on the New York Stock Exchange. Shares of United Airlines parent UAL Corp <UAUA.O> were up 4.29 percent to $8.50 on Nasdaq. Delta Air Lines <DAL.N> shares were up 4.33 percent at $6.02 on the NYSE.
(Reporting by Kyle Peterson; editing by John Wallace)