Imminent end of six-month civil war sends stocks flying
Reports about the imminent end of the six-month civil war in Libya have sent airline stocks flying higher. This should come as welcome news to the airline industry, which is often prone to be badly affected by volatility in the price of crude oil. Airline stocks tumbled in February when the conflict began. Fuel costs take up more than a third of most airlines’ total expenses, and the International Air Transport Association has noted that every $1 increase in the price of a barrel of oil adds $1.6 billion in costs to the industry as a whole.
In the US, two leaders in the sector – Delta Air Lines and US Airways Group – have seen their share prices rise, with both stocks seeing increases in volume calls.
[pictured: US Air Force B-2 Spirit stealth bomber]