Airline stocks in the U.S. were pressured again on Thursday, following on from the trend started yesterday after news Deutsche Lufthansa lowered its 2014 operating guidance.
Shares of Delta Air Lines (NYSE:DAL) were down over 6.1% at US$38.22 in New York and Southwest Airlines (NYSE:LUV) lost 4.9% to US$25.62 on Thursday afternoon, while United Continental (NYSE:UAL) shed 6.6% to US$42.26. American Airlines (NASDAQ:AAL) fell 6% to US$39.71.
Deutsche Lufthansa fell the most Wednesday since September 11 2001 after the airline cut earnings forecasts for this year and next as a capacity splurge at Gulf competitors hurt prices. The company said operating profit would amount to about 1 billion euros in 2014, and 2 billion euros next year, both lower than prior forecasts of 1.3 to 1.5 billion and 2.65 billion, respectively.
The airline was also hurt by a pilot strike in early April, which cut Lufthansa's earnings by 60 million euros, with bookings only recently recovering.
The German company's chief executive Carsten Spohr, who took on the job on May 1, is dealing with challenges brought on by Gulf carriers such as Dubai-based Emirates, whose hubs are taking away traffic from traditional European bases.
Lufthansa fell as much as 16% on Wednesday to 16.70, the steepest drop for the airline since the 9/11 attacks on New York and Washington. The company's stock closed Thursday at 16.85.
The airline industry was also shook yesterday by news that Emirates Airline cancelled an order for 70 jets from Airbus (OTCMKTS:EADSY).
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