Wednesday morning, most of the leading airline stocks caught a bid higher to start the session. The airline stocks will usually trade higher whenever the price of crude oil declines. Yesterday, the popular United States Oil Fund (NYSEARCA:USO) traded lower by 0.31 cents to $35.19 a share. The October contract for light sweet crude (CL-V2) also declined lower by 0.90 cents to $94.40 a barrel. As long as oil continues to slide the airline stocks could continue to rally.
Some of the leading airline stocks that traded higher yesterday include United Continental Holdings Inc (NYSE:UAL), Delta Air Lines Inc (NYSE:DAL), Southwest Airlines Co (NYSE:LUV), and Spirit Airlines Incorporated (NASDAQ:SAVE) to name a few. Traders should remember, oil can trade higher at anytime as it is affected by the U.S. dollar, weather, conflict in the Middle East and around the world. Should oil begin to trade higher, the rally in the airline stocks could be short lived.