Airline Stocks Glide Lower On Worries Recovery Could Slow

Airline stocks are seeing a decisively lower day today, as Continental Airlines (NYSE: CAL) reported a 4.7% consolidated increase in traffic and 2.2% increase in capacity. Passenger revenue per available seat mile was also seen to be up 21 to 22%, compared to some analysts estimate of a 23% - 25% increase.

Investors may be taking this is a sign of slowdown of the recovery in the airline sector.

Shares of Continental are off 6.18% to $20.80. UAL Corp. (Nasdaq: UAUA) is down 6.66% to $19.34. UAL and Continental are set to merge and form the largest airline later this year.

Recently, however, Soleil Securities started the Airline sector with an Outperform rating. The firm noted that the stocks that they preferred were the ones with the "largest international and business travel focus." Click here for more color.

Other airlines seeing a dip today include:

• Delta Air Lines Inc. (NYSE: DAL) down 5.80% to $11.04;
  
  
• AMR Corp. (NYSE: AMR) down 4.38% to $6.33; and
  
  
• US Airways (NYSE: LCC) down 4.97% to $8.22.

Many of these airline stocks have more than doubled over the past year.

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