Why American Airlines Group Inc. Stock Is Stuck Near $11 as Oil Tops $100
American Airlines Group shares slipped to $11.04 early Thursday, off 0.6% from Wednesday’s finish. Oil temporarily topped $100 a barrel after new Gulf shipping attacks, adding to the drag on airline stocks. The shift is significant: fuel ranks just behind labor in airline expenses, and the cost of the fuel burned is outpacing crude. Since the Iran conflict kicked off, jet fuel prices have soared—doubling, according to Reuters. Crude's only up about a third in that span, so margins are getting squeezed before airlines can even think about raising ticket prices.