Lower oil prices, solid quarterly results and capacity cuts bolster sector
Airline shares rallied for a third consecutive session on Thursday as oil prices continued to decline and after Continental Airlines reported a narrower-than expected loss and a stronger cash position.
The Amex Airline Index added more than 4% at last check to 16.89 points with all of its 14 components in the green. The index is now 33.4% above its all-time low of 12.66 struck early Tuesday, and at its highest point for the month.Crude for August delivery fell 45 cents to stand at $134.13 a barrel in electronic trading on Globex, and is now 8.6% below the $147.27 record high hit last Thursday. See Future Movers.Also helping to boost stocks has been some fairly solid results from some of the nation's largest airlines despite investor concerns that over-the-top fuel bills might cause a hemorrhaging of cash and push carriers to the brink of collapse....MORE