Airline stocks tumbled on Thursday, extending year-to-date losses, as soaring oil prices sparked concerns about shrinking profits.
Shares of US majors American Airlines (AAL) and United Airlines (UAL) dropped more than 3%, while Delta Air Lines (DAL) fell nearly 2%. Shares of regional carriers Alaska Air Group (ALK) and Southwest (LUV) also declined.
Jet fuel prices have surged more than 100% over the past month as the Middle East conflict disrupted energy supplies. With US crude futures (CL=F) and Brent (BZ=F) above $105 per barrel, jet fuel has experienced an outsized price increase.
“Asian refiners have had to cut utilization rates due to a lack of crude oil, further exacerbating the supply situation,” Andy Lipow, president of Lipow Oil Associates, told Yahoo…
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Source finance.yahoo.com
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