This morning, many of the leading airline stocks are trading higher at the start of the session. The likely reason for the move higher in the sector comes from this morning’s decline in oil. Today, crude futures for January (CL-F3) are trading lower by 0.91 cents to $88.17 a barrel. Fuel prices are one of the highest expenses that an airline has besides labor. Traders should always watch for strength in the airline sector whenever oil declines.
Delta Air Lines Inc (NYSE:DAL) is a leading airline stock in the sector. Today, DAL stock is trading higher by 0.21 cents to $9.83 a share. Short term traders must watch for intra-day resistance around the $10.00, and $10.25 levels. The daily chart for DAL stock will have near term resistance around the $10.75 level.
Some other leading airline stocks that are also climbing higher today include Southwest Airlines Co (NYSE:LUV), United Continental Holdings Inc (NYSE:UAL), Spirit Airlines Inc (NASDAQ:SAVE), and Jetblue Airways Corp (NASDAQ:JBLU). Traders should keep a close eye on crude prices, should crude start to rally or trade higher the airline stocks could begin to sell off.