Airline Stocks Poised For Takeoff On Lower Oil Prices

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.