Crude oil spike hits US airline sector

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US airline stocks continued on a sudden turbulent decline as sectarian violence across Iraq sent crude oil prices to a three-month high.

The price of Brent crude oil, the international standard that many airlines hedge against, jumped 1.9 per cent to $112.14 per barrel while spot jet fuel rose 1.8 per cent to $291.08 a barrel as Kurdish forces said they took control of the key oil city of Kirkuk.

Shares of American Airlines fell 6 per cent to $39.95, United Continental declined 6 per cent to $42.60, Delta dropped 5 per cent to $38.67, and Southwest slid 4 per cent to $25.76.
Strategists on Wall Street have pointed to the tension for weakness in the broader market as well, which preceded weaker than expected economic data in the US.