AIRLINES SHARES TUMBLE AS FINANCIAL MARKETS FALL

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By TESTCustomwebLP TESTCustomwebLP August 5, 2011 11:54

AIRLINES SHARES TUMBLE AS FINANCIAL MARKETS FALL

Airline stocks continued to tumble yesterday, as investors become more wary of investing in airlines as the broader markets all fall in response to the worsening economic situation in Europe and the US.

The NYSE Arca Airline Index dropped by 3% to 32.64 points after posting a small gain in the prior session, its first in nearly four weeks.

Shares of Southwest fell nearly 6% to $9.11 each, its lowest trading point in 19 months, after second-quarter profits failed to meet analysts’ estimates and on the news it plans to cut capacity next year. Chairman and Chief Executive Gary Kelly also warned of a softening in business travel, which does not bode well for the wider airline market.

Shares of American parent AMR Corp fell 2%, Delta Air Lines fell 4% and United Continental declined 1%.

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By TESTCustomwebLP TESTCustomwebLP August 5, 2011 11:54
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