Airline Stocks Decline as Oil Prices Take Off

By Dave Sebastian

Shares of airlines slid Friday as oil prices rose after a U.S. airstrike in Baghdad killed an Iranian military leader, an attack that could ramp up tensions in the oil-rich Middle East.

American Airlines Group Inc. (AAL) was down 5.3%, Southwest Airlines Co. (LUV) shares fell 2.5%, Delta Air Lines Inc. (DAL) was off 2.6%, United Airlines Holdings Inc. (UAL) lost 3.1% and Alaska Air Group Inc. (ALK) was down 2.6%. JetBlue Airways Corp. (JBLU) shares fell 3.4%, while Spirit Airlines Inc. (SAVE) shares slid 4.2%.

American depositary receipts of non-U.S. airlines also fell. ADRs of the Colombian airline Avianca SA (AVH) were off 1.3%, while Copa Holdings SA (CPA) ADRs fell 2.5%. ADRs of China Eastern Airlines Corp. Ltd. (CEA) declined 3.3%.

Oil prices rallied, with Brent crude rising about 3.7% to $68.70 a barrel. WTI climbed 3.6% to trade around $63.35 a barrel.

Global stocks faltered, with the S&P 500 falling around 0.6% after the S&P and other U.S. benchmarks had closed at record highs Thursday following China's move to rejuvenate its slowing economy.

Write to Dave Sebastian at [e-mail]

(END) Dow Jones Newswires

January 03, 2020 10:24 ET (15:24 GMT)

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