Cool summer helps airlines cut costs

Tuesday, 19 Aug, 2014 0

Airline shares have risen following a drop in the price of crude oil, which should reduce their costs and boost profits.

Shares in American Airlines rose 4% to $40.66 and shares in United Continental also rose 4% to $47.84. Delta Air Lines’ shares gained 3% to $39.51 and Southwest Airlines’ shares rose 4% to $30.82.

Brent oil futures fell $1.79 to $101.74 a barrel yesterday Monday after earlier climbing to more than $103.

A cooler than expected summer has lowered demand for natural gas to power air conditioning units in the US, helping to bring down the cost of fuel.



 

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Linsey McNeill

Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk



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