U.S. airlines rose the most since 2011, ending a six-day losing
streak, as fliers ignored Ebola worries and continued to fill planes.
Jet fuel dropped to the lowest price in almost four years.
The
Bloomberg U.S. Airlines Index climbed 6.3 percent, led by American
Airlines Group Inc. The carrier surged 10 percent for its biggest gain
since merging with US Airways Group in December.
Investors’
focus may have shifted to the outlook for a possible record
third-quarter industry profit and away from the spread of Ebola and a
possible global economic slowdown that had weighed on the shares. A
group of 11 U.S. carriers should report a $4 billion profit, according
to Michael Linenberg, a Deutsche Bank AG analyst in New York.
“There
has been a little more concern on Ebola, but so far demand remains
strong,” said Savanthi Syth, an analyst with Raymond James Financial
Inc. in St. Petersburg, Florida. “People say, ‘I’m concerned, I’m taking extra precautions, but it’s not going to make me not take my vacation.’”
Jet
fuel in New York harbor fell 3.3 percent to $2.44 a gallon, the lowest
price since December 2010. Fuel has accounted for more spending than
labor at the largest U.S. airlines, according to data compiled by
Bloomberg.
To contact the reporter on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net
To contact the editors responsible for this story: Ed Dufner at edufner@bloomberg.net Molly Schuetz, John Lear
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