Here’s Why Airline Stocks are Crashing

Airline stocks are not off to a good start this November. They declined sharply on Tuesday outpacing a sharper decline in the wider market, over concern that a Greek bailout deal with the European Union might not work out.

Bill Stone, chief investment strategist at PNC Asset Management Group says, “Market sentiment remains cautious at best, with added concerns that the pace of economic growth may slow, the upcoming U.S. sovereign debt negotiations in November, and worries that the euro zone crisis could reignite a recession in the United States, it is clear why investors have taken pause.”

Arca Airline Index (NYSE:FAA) was off about 1.6% after dropping almost 4% earlier in the session with only one of its15 components slightly gaining. American Airlines parent AMR Corp (NYSE:AMR) shares fell 2.5%, US Airways (NYSE:LCC) dropped 1.2% and Delta Air Lines (NYSE:DAL) was down 2%. Foreign carriers: U.S.-traded shares of Tam SA dropped 3%, Gol Linhas fell 3.4% and Ryanair Holdings declined 2.3%.

Here’s a fundamental look at airline stocks:

  • AMR Corporation (NYSE:AMR): The shares recently traded at $2.54, down $0.09, or 3.42%. Its market capitalization is $849.80 million. They have traded in a 52-week range of $1.75 to $8.98. Volume today was 2,303,740 shares versus a 3-month average volume of 13,036,100 shares. The company’s trailing earnings are $-2.93 per share. About the company: AMR Corporation operates an airline that provides scheduled passenger, freight, and mail service throughout North America, the Caribbean, Latin America, Europe, and the Pacific. The Company also provides connecting service throughout the United States, Canada, and the Caribbean. In addition, AMR provides aviation services, call center management services, and investment advisory services.
  • US Airways Group, Inc. (NYSE:LCC): The shares recently traded at $5.66, down $0.11, or 1.91%. Its market capitalization is $917.68 million. They have traded in a 52-week range of $4.53 to $12.26. Volume today was 1,814,015 shares versus a 3-month average volume of 7,732,640 shares. The company’s trailing P/E is 11.28, while trailing earnings are $0.50 per share. About the company: US Airways Group, Inc. is an air carrier that transports passengers, property, and mail. The Company provides regularly scheduled service at airports in the United States, Canada, Europe, the Caribbean, and Latin America.
  • Delta Air Lines Inc. (NYSE:DAL): The shares recently traded at $8.34, down $0.18, or 2.11%. Its market capitalization is $7.07 billion. They have traded in a 52-week range of $6.41 to $14.54. Volume today was 6,832,862 shares versus a 3-month average volume of 13,987,500 shares. The company’s trailing P/E is 15.74, while trailing earnings are $0.53 per share. About the company: Delta Air Lines, Inc. provides scheduled air transportation for passengers, freight, and mail over a network of routes throughout the United States and internationally.
  • JetBlue Airways Corporation (NASDAQ:JBLU): The shares recently traded at $4.37, down $0.11, or 2.46%. Its market capitalization is $1.30 billion. They have traded in a 52-week range of $3.49 to $7.60. Volume today was 951,423 shares versus a 3-month average volume of 4,850,270 shares. The company’s trailing P/E is 18.06, while trailing earnings are $0.24 per share. About the company: JetBlue Airways Corporation provides nonstop passenger flight service through its Airbus A320 aircraft. The Company’s airline is based in New York’s John F. Kennedy Airport and currently flies to various destinations in the United States.
  • Southwest Airlines Co. (NYSE:LUV): The shares recently traded at $8.50, down $0.05, or 0.58%. Its market capitalization is $6.62 billion. They have traded in a 52-week range of $7.15 to $14.32. Volume today was 6,727,357 shares versus a 3-month average volume of 11,940,000 shares. The company’s trailing P/E is 43.37, while trailing earnings are $0.20 per share. The company pays a dividend of $0.02 per share for a dividend yield of 0.20%. About the company: Southwest Airlines Co. is a domestic airline that provides primarily short-haul, high-frequency, point-to-point service. The Company offers flights throughout the United States.
  • United Continental Holdings (NYSE:UAL): The shares recently traded at $19.00, down $0.32, or 1.66%. Its market capitalization is $6.29 billion. They have traded in a 52-week range of $15.92 to $29.59. Volume today was 1,273,089 shares versus a 3-month average volume of 6,773,660 shares. The company’s trailing P/E is 10.91, while trailing earnings are $1.74 per share. About the company: United Continental Holdings Inc. is an airline holding company. The Company owns and operates airlines that transports persons, property and mail throughout the United Statesand abroad.

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