Sector Snap: Airline Shares Fall Hard

ATLANTA (AP) — Shares of major airlines fell hard Wednesday as oil prices continued to spike.

Benchmark crude for December delivery rose $2.25 to settle at $81.37 a barrel on the New York Mercantile Exchange. Prices hit $82 at one point. Gasoline futures spiked 4 percent and Brent crude rose $2.48 to $79.72 on the ICE Futures exchange.

The AMEX Airline Index, meanwhile, fell 5.6 percent in afternoon trading.

Continental Airlines Inc. and the parent of American Airlines posted third-quarter losses as many business travelers stayed home or flew in cheap seats. The parent of low-cost carrier AirTran Airways reported a profit and said it plans more routes while the larger airlines cut back.

Delta Air Lines Inc. and Alaska Air Group Inc. report third-quarter results on Thursday.

Delta shares fell 61 cents, or 6.8 percent, to $8.41, while shares of American Airlines parent AMR Corp. dropped 86 cents, or 11.2 percent, to $6.80 and shares of United Airlines parent UAL Corp. lost 91 cents, or 11.5 percent, to $6.99.

Continental shares lost $1.81, or 11.4 percent, to $14.11, while US Airways Group Inc. shares dropped 45 cents, or 10.3 percent, to $3.90.

Southwest Airlines Co. shares shed 35 cents, or 3.8 percent, to $8.91, JetBlue Airways Corp. shares lost 27 cents, or 4.5 percent, to $5.75 and shares of AirTran Airways parent AirTran Holdings Inc. fell 45 cents, or 8.3 percent, to $4.95.