UPDATE 1-AMR leads airline shares down as oil prices climb
CHICAGO, May 30 (Reuters) - AMR Corp., parent of American Airlines, led airline shares lower on Tuesday as crude oil rose above $72 a barrel, signaling higher jet fuel prices.
AMR shares slid $1.93, or 7.4 percent, to $24.01, while Continental Airlines fell $1.37, or 5.4 percent, to $24.21 both on the New York Stock Exchange. Shares of UAL Corp., parent of United Airlines, dropped $1.59, or 5.1 percent, at $29.46 on Nasdaq.
The Amex airline index <.XAL> was down 3.2 percent.
“It’s got to be oil. Oil is up big,” said Morningstar analyst Chris Lozier. “The (airline) sector is all down.”
NYMEX crude oil futures <CLc1> were up 1.2 percent at $72.20 a barrel.
Airlines have been weakened by soaring fuel prices and low-fare competition that makes it hard for carriers to raise ticket prices enough to cover costs.
Low-cost carrier JetBlue Airways Corp. was the sector’s lone gainer, up 9 cents at $10.38 on Nasdaq after Merrill Lynch raised its rating on the stock to “neutral” from “sell.”
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