Home

ADRs in Focus: Latin American airline shares off on oil

By Associated Press
April 22, 2008 | Comments (0)

Recs

0

Shares of Latin American airline stocks traded on U.S. markets fell sharply on Tuesday after the price of oil surged into record territory.

On the New York Mercantile exchange, light, sweet crude for May delivery rose to a record of $119.90 before retreating to settle at $119.37 a barrel.

ADRs of Latin American airline stocks reacted negatively to the spike. Shares of airline companies often move opposite the price of oil because fuel represents one of their biggest costs.

Brazilian airline GOL Linhas Aereas Inteligentes SA lost 71 cents, or 4.6 percent, to $14.67. Tam SA, also based in Brazil, lost 98 cents, or 4.5 percent, to $20.81. Santiago, Chile-based Lan Airlines SA shed 40 cents, or 2.9 percent, to $13.57.

The broader ADR market was also lower on Tuesday. The Bank of New York Latin America ADR index lost 4.93 points to 467.59.

ADRs, or American Depositary Receipts, are securities that allow foreign companies to be traded on U.S. markets.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

DocumentId: 627102, ~/articles/articlehandler.aspx, 12/2/2008 6:49:25 AM,

Sign up for FREE Motley Fool site access to keep reading:

“ADRs in Focus: Latin American airline shares off on oil”

Signing up allows you to comment on articles and on the discussion boards.

It's completely FREE and will take only 10 seconds.

Privacy / Legal Information

We will use your email address only to keep you informed about updates to our web site and about other products and services that we think might interest you. The Motley Fool respects your privacy. Please read our Privacy Statement

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.