As oil tends to decline, airlines like United and Continental have had their stocks increase. Why? Oil has been sinking in price. Yesterday, oil dropped $-2.54, or more than 3%. This cause & effect relationship has also been prominent in other areas in transportation. The biggest leader of the AMEX Airline Index for July 17th was the AMR Corporation, owner of American Airlines and American Eagle, whose stock rose nearly 19%. In second was Northwest Airlines, whose stock went up about 15%.
On Wednesday, Airlines did even better. Oil also decreased a greater percentage on Wednesday than it had yesterday. United Air Lines Corporation and Continental Airlines were the leaders for that day.
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