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Fuel Prices Weigh on Airlines

Wall Street Journal Original article ›

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United Airlines stock sank 37% this day, thats a large drop, as United large first quarter loss of $537 million was discussed by United's CFO with analysts. Analysts raised questions about United's ability to meet its debt covenants as fuel prices continue to rise. They reached $119 a barrel. The CFO Jake Brace said there were currently no problems but given weak growth in airline revenue and rise in fuel prices he said "its difficult to predict whether we will have an issue or not."

Airlines industry pricing.

11/16/2006

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