Airline Stocks Decline As S&P Downgrades U.S.

Financial News Network
August 09, 2011 AT 2:48 AM
Airline stocks slipped Monday on worries that Standard & Poor's downgrade of U.S. debt could cause a 2008-like liquidity crisis and wipe out business-travel demand.The NYSE Arca Airline Index dropped 3.4% to 31.01 points, its lowest point since December, 2009, with all 15 components in the red.Shares of US Airways(NYSE:LCC) fell 6%, AMR Corp.(NYSE:AMR) fell 5% and Southwest Airlines Co.(NYSE:LUV) dropped 2.2%.Airline stocks fell sharply in 2008 when the collapse of Lehman Brothers surprised financial markets and shut down credit lines, drying up international business travel.