Airline shares dropped in Monday midday trading as investors worried that the U.S. and global economies may have farther to go before recovery sets in.
The AMEX Airline Index fell 4.6 percent, with all 13 component stocks lower.
Oil prices declined as well. The price of a barrel of crude lost $2.79 at $66.76 on the New York Mercantile Exchange.
Major stock indexes retreated by about 2 percent after the World Bank estimated the global economy will shrink 2.9 percent this year. It previously predicted a 1.7 percent decline.
Delta Air Lines Inc. said the H1N1 virus will cost the carrier $250 million in annual revenue. CEO Richard Anderson told shareholders at the airline's annual meeting in New York that the virus, originally known as the swine flu, made Delta significantly reduce capacity into Mexico, Latin America and Asia _ where many remember the SARS outbreak of 2002-2004 _ as travellers shunned flights.
Shares of AMR Corp., parent of American Airlines, lost 19 cents, or 4.4 percent, at $4.15. Continental Airlines fell 49 cents, or 5.3 percent, to $8.68. Delta Air Lines gave up 31 cents, or 5.1 percent, at $5.76. US Airways lost 7 cents, or 2.7 percent, at $2.50. UAL Corp., parent of United Airlines, fell 22 cents, or 5.8 percent, to $3.63. Alaska Air gave up 67 cents, or 3.8 percent, at $17.19.
AirTran lost 28 cents, or 4.8 percent, at $5.57. JetBlue Airways fell 22 cents, or 5.4 percent, to $3.88. Southwest Airlines dropped 23 cents, or 3.5 percent, to $6.41. SkyWest gave up 50 cents, or 4.9 percent, at $9.75.
(This version CORRECTS Delta swine flu loss to $250 million for year sted second quarter after company clarified)
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