FORT WORTH, Texas -- With the notable exception of Southwest Airlines, U.S. airline stocks have dived so far that some industry financial analysts are beginning to wonder whether they haven't already hit ground.
The impact of a huge increase in jet fuel prices and fears of recession have driven airline stock prices down sharply.
AMR, which traded at $89.75 a share Sept. 1, 1989, and reached high as $107.25 when Donald Trump made his bid for the carrier, closed yesterday at $41.75, down more than 50 percent from Sept. 1 a year ago. Delta, which sold for $80 a share Sept. 1 last year, closed yesterdayat $54.75, down 32 percent in that period.
Southwest, which split its stock 3 for 2 in August, has done the best, closing yesterday at $14.625, down from its Sept. 1, 1989, price of $19.50.
"Southwest has stuck steadfastly with its niche -- close-in airports and heavily traveled routes on non-stop routes," said Lee Howard, chief executive officer at Airline Economics Inc., an aviation consulting concern.
Dismal as those stock performances have been, the industry's also-rans have been pummeled.
USAir, whose strength is in Pittsburgh and the Northeast, has plunged 71 percent from just under $55 to yesterday's close of $15.875. And UAL Corp., which traded as high as $294 last year as a group mapped plans for a $300-a-share buyout of the parent of United Airlines, is down about two-thirds to $102.25 yesterday.
"They're selling below book value. Airlines rarely trade below book value," said Barry Gordon, president of American Fund Advisers, a New York investment company that operates the National Aviation and Technology mutual fund.