One of the strongest stock market sectors in 2013 has been the airline stocks. This industry group has significantly benefited from consolidation between the leading legacy carriers. Delta Air Lines Inc (NYSE:DAL) merged with Northwest Airlines to create a giant carrier. United Airlines and Continental Airlines merged with each other to form United Continental Holdings Inc (NYSE:UAL). This is now another massive airline carrier. Recently, U.S. Airways Group Inc received approval to merge with bankrupt American Airlines Inc to form the world's largest airline. This consolidation in the industry group removed much of the competition that was created in the 1980's deregulation. Back then many investors said there would one day be only three large airlines and that thought has now become a reality.
This industry group has been very overbought and extended recently so a pullback is actually due for this airline stocks. Today, UAL stock is trading lower by $1.41 to $29.55 a share. Short term traders should watch for intra-day support around the $29.05 level. The daily chart for UAL stock will have support around the $27.00 level.
Some other leading airline stocks that are declining lower today include US Airways Group, Inc. (NYSE:LCC), Delta Air Lines, Inc. (NYSE:DAL), Alaska Air Group, Inc. (NYSE:ALK), and Southwest Airlines Co. (NYSE:LUV). All of these airline stocks will also be affected by the price of fuel which is one of the largest expenses for the airlines companies.