Airline stocks miss rally, grounded by rising oil prices – American Airlines Group Inc. (NASDAQ:AAL)

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Notably absent from today’s broad-based rally was airline stocks, even as the Dow Jones Transportation Index closed 0.7% higher: ALK -3.4%, AAL -3.2%, SAVE -1.9%, UAL -1.7%, JBLU -0.9%, DAL -0.8%, LUV flat.

Crude oil prices, which factor into jet fuel costs, surged in today’s trade on rising concerns that tension between the U.S. and Iran could ratchet up and drive oil prices even higher, have clipped investor interest in the fuel cost-sensitive airline industry.

Airline shares also may have been weighed by news from cruise line operator Carnival that it is seeing its European brands struggle amid macroeconomic headwinds, as airline investors worry about similar problems hurting earnings prospects for international carriers.

ETF: JETS





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