Emerging markets airline ADRs mostly rose during afternoon trading Monday, even as crude prices flirted with $120 per barrel and two American carriers reportedly mulled combining operations.
Continental Airlines Inc., which had been rumored to be seeking a tie-up with United Airlines parent UAL Corp., said Sunday that it would stay independent. Yet news broke Monday that UAL was moving to combine with US Airways in a deal that would create one of the world's largest airlines.
Also Monday, supply and labor concerns at oil and gas wells around the world helped send crude prices to just under $120 per barrel on the New York Mercantile Exchange. The profitability of airline operators is closely linked to jet-fuel costs.
Despite the oil jump, shares of Brazil's GOL Linhas Areas Inteligentes SA rose 18 cents to $15.18.
Shares of TAM SA, also located in Brazil, gained 30 cents to $21.30.
Shares of LAN Airlines SA, headquartered in Chile, jumped 8 cents to $13.76.
Chinese airlines fell during the session. Shares of China Southern Airlines Co. Ltd. shed 70 cents, or 2.1 percent, to $32.40, and shares of China Eastern Airlines Corp. Ltd. slid 90 cents, or 2.1 percent, to $42.10.
The Bank of New York Emerging Markets ADR Index _ which includes shares of companies based in China, Mexico, Brazil and more _ gained 1.76 points to 370.01. ADR stands for American Depositary Receipt, which is a security designed to allow U.S. investors to trade shares of companies based overseas.
The Bank of New York Composite ADR Index gained 0.98 points to 182.44 as the U.S. markets rose in afternoon trading.
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