Airlines Stocks Continued Down Due to Tensions in Iraq
|June 15, 2014||Filled under Iraq Investment News|
Iraq Investment News –
Stocks of Airline continued to fall Thursday amid Middle East tensions and rising oil prices, led by United Continental’s 6% tumble.
Major carriers fell hard Wednesday after Germany’s Lufthansa warned earnings this year will be lower than expected. It cited intense competition on high-margin long-haul flights out of Europe.
Wednesday’s drop mostly affected global carriers, but the latest one also includes U.S. regional carriers such as Southwest Airlines. Oil prices spiked Thursday to the highest level in nine months as fighting escalated in Iraq, threatening supplies. Light crude futures rose $2.13 to $106.53 a barely.
Militant group the Islamic State in Iraq and Syria earlier took control of Mosul, Iraq’s second-largest city, and on Thursday threatened to take over more cities, including the capital, Baghdad.
Airlines might also be down on concerns of more attacks on airports like the one Sunday by militants on Pakistan’s largest airport in Karachi. That attack temporarily shut it down and left more than 30 dead.
United was down nearly 6% on the stock market today. Over the last two days, it’s lost 11% of its value. American Airlines, whose stock had surged since it emerged from bankruptcy and merged with US Airways in December, was down 5%.
The world’s largest airline, Delta Air Lines, fell more than 5%. Delta shares climbed 2.5% on June 3 after it reported a 7% jump in May unit revenue, up from April’s 6% gain in passenger revenue per available seat mile.
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