Airlines' Outlook Less Rosy Due to Fuel Costs
Most airlines are expected to make money this year, but higher fuel prices, leveled-off demand and little or no prospects for airfare increases on domestic routes have wiped the big smiles off the faces of many airline executives.
Prices for airline shares, which had soared early in the year on lower fuel prices and speculation about airline mergers, plummeted last week on the downward earnings estimates and rising fuel prices.
On Friday, the Dow Jones Wilshire U.S. Airline Index and the American Stock Exchange Airline Index were each down 4 percent for the day.
AMR shares fell 4.8 percent to $26.35 for the day, and were down 35 percent from a Jan. 19 high of $40.66.
Shares in Southwest Airlines were down 1.5 percent.
Copyright (c) 2007, The Dallas Morning News Distributed by McClatchy-Tribune Business News. For reprints, email , call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
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