Airline Winners & Losers: Delta

NEW YORK -- Airlines stocks dropped in Tuesday afternoon trading with a few more losers than winners, as oil prices fluctuated and Delta(DAL Quote) announced it would raise $1 billion through an advance sale of bonus miles to American Express(AXP Quote).

The Amex Airlines Index fell 3.3%, with only one of its 13 component stocks rising.

Oil prices weakened in the face of new reports that the sluggish global economy will cause energy consumption to fall sharply.

Light, sweet crude for January delivery was down 44 cents to $43.27 a barrel on the New York Mercantile Exchange, after sinking below $43 earlier in the day.

Delta Air Lines, the world's largest carrier, announced a multiyear extension of its credit card partnership with American Express. Delta will get an immediate $1 billion boost to its liquidity as American Express buys SkyMiles for use in its membership rewards program. Delta expects another $1 billion from contract improvements through 2010.

At an investor conference, Delta President Ed Bastian said the Atlanta-based airline expects to be "solidly profitable" in 2009.

Meanwhile, UBS slightly widened the losses it forecast for eight airlines this year but raised its outlook for industry profits next year. Analyst Kevin Crissey pointed to lower fuel prices offset by worse-than-expected travel demand in November.

In afternoon trading, Delta shares fell 23 cents, or 2%, to $10.79; shares of American Airlines parent AMR (AMR Quote) lost 40 cents, or 3.9%, at $9.75; and Continental Airlines (CAL Quote) gave up 56 cents, or 3.3%, at $16.43.