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Wall Street airlines - Rising oil prices erode airline stocks' gains - UPDATE 1
AFX
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SAN FRANCISCO (AFX) -- Airline stocks lost ground Tuesday as oil prices pushed past $60 a barrel with a 3% gain on concerns that more bad weather in the Gulf of Mexico might disrupt production and result in higher energy prices.
The Amex Airline Index close off 1.9% at 47.95 points.
Oil futures ended the day up $1.70 to $60.62 in New York.
American Airlines' parent AMR Corp. fell 1.5% to $12.48 and Continental Airlines was off 1.3% at $14.10.
Alaska Air Group fell 0.2% to $30.92. Alaska Airlines' pilots union rejecting a tentative agreement for a labor contract that would have changed the way previous cost reductions were carried out.
JetBlue Airways fell 2.4% to $20.23. The low-fare carrier said it will begin flying from Newark, N.J., as of Oct. 5 to Fort Lauderdale, Orlando, West Palm Beach, Tampa and Fort Myers, Fla.
JetBlue also said in a filing with the Securities and Exchange Commission that if jet fuel prices remain at $1.68 a gallon for the second half of the year, operating margins will be lower than the carrier had forecast. That margin outlook is based on the assumption of jet fuel at $1.45 a gallon, according to the filing.
Additionally, JetBlue said it does expect an operating profit for the second half.
Among the gainers, America West Holdings rose 1.7% to $6.42. U.S.-listed shares of British Airways and Air France KLM both advanced.
Aircraft maker Boeing Co. fell 1% to $64.30.
This story was supplied by MarketWatch. For further information see www.marketwatch.com.
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