Market Overview

Airline Stocks Poised For Takeoff On Lower Oil Prices

Share:

One sector that is feeling the benefit of lower oil prices are the airlines, with fuel costs accounting for roughly 30 percent of operating expenses for airlines, according to Credit Suisse. With crude oil now trading at levels last seen in 2011, airline profit margins should be poised to expand.

The Amex Airline Index (NYSE: XAL) has rallied nearly 20 percent since hitting lows on October 16. December crude oil futures have dropped roughly 12 percent in that same time frame.

In pre-market trade, airline stocks are higher across the board, with Delta Air Lines, Inc. (NYSE: DAL), American Airlines Group Inc (NYSE: AAL) and United Continental Holdings Inc (NYSE: UAL) all showing gains of about 1 percent.

 

Related Articles (AAL)

View Comments and Join the Discussion!

Posted-In: Credit SuisseNews Pre-Market Outlook Markets

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com