Airline Stocks: Any Excuse To Fall

Global Airline Index Statistics

Top 5 Companies by Market Cap Top 5 Companies by 52-Week Stock Price Decline

Shares of UAL (UAUA) were briefly halted for trading and grounded earlier today on an article from six years ago re-posted by the Florida Sun Sentinel newspaper on its website which stated the parent company of United Airlines had declared bankruptcy. Only the date was changed in the article from 2002 when United Airlines entered bankruptcy, from which the Company emerged from in 2006 in its current form as a public company. Jittery investors still sold off the shares of airline companies and UAL despite the identification of the false bankruptcy rumor as such, with UAUA trading down by over 10% today on more than two times its average trading volume.

The accompanying tables present an overview for a Global Airline Index of 51 companies with market caps over $200 million, which is down by over 30% over the past year on both an equal-weight and market cap-weight basis. Shares of UAL are among the biggest stock price decliners over the past year, losing nearly three-fourths of their market value, which is second only to US Airways (LCC). Airline industry leader Southwest (LUV) has fared much better than its peers over the past year with gains of about 6% through today.

Comments

[LCC4LIFE]

I cannot believe what happened today with UAUA. I didn't own any shares, but it is totally unfair for those who did. Also, it not only affected UAUA stock, but ALL airline stocks in general. I think a lot of people got scorched today if they had any stop orders that got triggered. I feel horrible for those who lost over 50% of the stock's value simply due to some error made by an idiot editor....

You think it could have been a hacking job by some outside manipulator?

2008 Sep 08 04:35 PM

[soon2bretyrd]

I have been buying Airtran and watching. It was holding at around $2.80 for a few days then wham, it dropped to $2.25 in a matter of minutes. I had no Idea and it bagan to nmove back up slowly and finally got back to $280 at the end of the day. Thank goodness I did not sell. Hopefully, it will make up tomorrow for the overall gain the other sectors had today. I expect it to go to around $3.10 tomorrow.

2008 Sep 08 05:11 PM

[appledeadmoney]

This fiasco smells. Period.

I believe this was the work of a hedge fund or major trader trying to close short positions on this stock and in this hot sector.

I believe an investigation needs to take place and if any malfeasance or illegalities are found fines, jail and lifetime disbarment from trading should be levied on the guilty parties.

2008 Sep 09 01:01 AM

[Southwest Airlines Lover]

I think Southwest Airlines is the best stock anyone can hold. It is a wonderful company and has held up better than almost anyother company in the US. That includes all companies, not just airlines. Go Southwest Go. We love you!

2008 Sep 11 12:11 PM