US Airlines and Cruise Stocks Soar as Oil Prices Plummet
US airline and cruise stocks are rising on Monday as oil prices hit an 11-day low. American Airlines, United Airlines, and Delta Air Lines each saw their shares increase by more than 2%, with Southwest Airlines advancing 1.7%. Carnival Corp rose by 2%, while Norwegian Cruise Line Holdings added 1.7% and Royal Caribbean gained 1.5%. The decline in oil prices is attributed to investors' anticipation of potential diplomatic progress on resolving the US-Iran conflict during this week's United Nations meeting, as well as a partial recovery in oil shipments from Saudi Arabia.
Fuel represents one of the largest operating costs for airlines and cruise operators. As oil prices decrease, these companies benefit financially. The S&P Composite 1500 passenger airlines index is up 2.2% year to date.