|
"We expect industry capacity to accelerate and longer-term earnings prospects to be diminished in the absence of a merger," Baker wrote in a note to clients. Shares of United Continental Holdings Inc., the current No. 1 carrier, dropped 7.5 percent to $30.73. That's the biggest decline since June 4, 2012. Shares of Delta Air Lines Inc., the second-biggest airline, dropped 7 percent to $19.55. Southwest Airlines Co., which flies the most passengers within the U.S., lost 1.8 percent to $13.47. The selling struck shares of smaller airlines too. JetBlue Airways Corp. shares shed 1.4 percent to $6.27, while Spirit Airlines Inc. stock slid 4.9 percent to $32.69.
Copyright 2013 The Associated
Press. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.