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Chicago: Airline shares defied the broader stock market on Friday vaulting higher as the price of oil, which influences the price of jet fuel, tumbled nearly 6 per cent.
Shares of United Airlines parent UAL Corp led the rally, gaining 8.04 per cent to $5.78 on Nasdaq. American Airlines parent AMR Corp was up 7.8 percent at $7.19 on the New York Stock Exchange.
The Amex airline index gained 2.59 percent, but the Dow Jones industrial average fell nearly 3 percent.
"Looks like it's finally reattached itself to changes in oil price movement," said Ray Neidl, airline analyst at Calyon Securities. "I take that as a slight positive because oil prices are moving down."
The airline industry has been severely battered this year by high fuel prices. As a result, carriers are rapidly downsizing to offset that expense.
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