Airlines See Further Downside as Libya Heats Up (UAL) (DAL) (JBLU)

Airline stocks are seeing a little more downside today following another increase in crude prices. WTI crude April 11 contracts are up $2.12 per barrel to $104.03 per barrel on the Comex, a price level not seen in well over two-years.

Overall, the NYSE Amex Airline Index (AMEX: XAL) is 1.8% lower today, as trouble in Libya are causing yet another surge in oil prices, and airline fuel prices as a result.

An increase in fuel prices will pinch margins and results for airlines, as they still struggle for consolidation and balance following the U.S. recession through 2009 - 10, and following the previous surge in oil prices above $100 per barrel in mid-2008. Based on February statistics, most airlines are accomplishing what they set out to do, with passenger enplanements picking up and items like available seat miles decreasing, hopefully adding a boost to company load factors.

Select airlines seeing further drops today include:

• US Airways Group, Inc. (NYSE: LCC) down 3.7%;
  
  
• AMR Corp. (NYSE: AMR) down 2.7%;
  
  
• Delta Air Lines Inc. (NYSE: DAL) down 2.6%;
  
  
• United Continental Holdings (NYSE: UAL) down 3.8%; and
  
  
• JetBlue Airways Corp. (Nasdq: JBLU) down 2%.

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