Boston, MA 06\/13\/2014 (wallstreetpr) \u2013 Delta Air Lines, Inc. (NYSE:DAL)<\/b> recorded the steepest decline on standard & Poor\u2019s 500 Index today after oil prices in Iraq soared up to their eight month high.<\/p>\n
The Iraq crisis and violence caused uproar in the prices of oil which roped in Delta Airlines among other U.S. carriers who have been reporting a fall. Shares of the airlines company fell 5.4% to close at $38.50 in New York. An analyst, Savanthi Syth, from the Raymond James Financial Inc. said that the sudden jumps in crude prices causes a great impact on short term earnings. He said that in the long term, airlines can better manage earnings as they have a scope of pushing up fares to compensate.<\/p>\n
Surging Oil Prices<\/b><\/p>\n
Crude refined jet fuel and labor pose the largest costs to any airlines. The price had surged only 1.2% in a 12 month period stretching up to June 6. However, just then the al-Qaeda offshoot expanded its control to encompass the northern regions of Iraq which raised alarms over a likelihood of increasing oil prices. Post that a jump of as high as 2.9% was noted today, which is the highest shoot since October 2012.<\/p>\n
The fall in the share price of Delta followed Lufthansa\u2019s announcement which lowered its operating profit from 1.3 -1.5 billion euros to 1 billion euros. This is on account of the increase in competition from Gulf airlines which are hampering the airlines businesses in Europe and in the U.S.<\/p>\n
Airlines Hurt<\/b><\/p>\n
Other Airlines who declined include United Continental Holdings Inc (NYSE:UAL)<\/strong>, which reported the steepest decline of 5.9%, with Delta being the runner up. Southwest Airlines Co (NYSE:LUV)<\/strong> with its 4.5% fall down to $25.72 was the third largest on the S&P 500. The Bloomberg U.S. Airlines Index reported a retreat in all the recorded 11 carriers, making it the biggest two day fall since April 2013.<\/p>\n","protected":false},"excerpt":{"rendered":" Boston, MA 06\/13\/2014 (wallstreetpr) \u2013 Delta Air Lines, Inc. (NYSE:DAL) recorded the steepest decline on standard & Poor\u2019s 500 Index today after oil prices in […]<\/p>\n","protected":false},"author":6,"featured_media":19691,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3286,1459,1438,1460,3783,3088],"stock_ticker":[],"class_list":["post-25662","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-delta-air-lines-inc-nysedal","tag-nysedal","tag-nyseluv","tag-nyseual","tag-southwest-airlines-co-nyseluv","tag-united-continental-holdings-inc-nyseual","entry"],"acf":[],"yoast_head":"\n