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US airline bonds tumble on renewed fears of Ebola outcome on travel

NEW YORK (Reuters) – U.S. airline bonds tumbled again on Wednesday on renewed fears of a drop-off in atmosphere transport spurred by reports that a second Texas helper had engaged a lethal Ebola pathogen and trafficked on a U.S. airline flight.

Shares of United Continental Holdings Inc (UAL.N) were down 7.1 percent $40.12 in mid-day trade on a New York Stock Exchange. Airlines American Airlines Group (AAL.O) shares were down 6.25 percent during $29.54. Delta Air Lines Inc (DAL.N) shares were down 4.5 percent during $31.30. JetBlue Airways Corp (JBLU.O) was down 3.8 percent during $9.84.

The shares also fell neatly on Monday on identical concerns about a intensity widespread of a illness from West Africa. The initial chairman diagnosed with Ebola in a United States, Thomas Eric Duncan, died during a Dallas sanatorium on Oct. 8. A helper who cared for Duncan was diagnosed with a illness on Sunday.

On Wednesday, a second helper concerned in Duncan’s caring tested certain for a illness and had trafficked by atmosphere a day before she reported symptoms.

The workman during Texas Health Presbyterian Hospital in Dallas took a Frontier Airlines moody from Cleveland, Ohio, to Dallas/Fort Worth International Airport on Monday, U.S health and airline officials said. Frontier, formed in Denver, was acquired from Republic Airways Holdings (RJET.O) final year by private equity organisation Indigo Partners LLC.

Holiday transport information by Oct. 5 uncover bookings are on standard with final year, UBS researcher Darryl Genovesi. He and other analysts pronounced U.S. airline shares could make gains in a fourth quarter, helped by reduce fuel prices.

Some pronounced holiday transport was expected to sojourn solid, notwithstanding illness concerns. “In a fourth quarter, people generally go home for Christmas,” pronounced Helane Becker, an researcher during Cowen and Co.

“I unequivocally doubt that Ebola is a hazard to airline gain in a fourth quarter,” pronounced Michael Derchin, an researcher during CRT Capital Group. With jet fuel prices reduce than in a third quarter, he said, “I would be repelled if gain were not a lot higher. we would be really astounded if there was any suggestive impact on atmosphere transport from Ebola.”

But bookings could tumble if Ebola fears mount. “It is positively probable that direct has run-down over a past 10 days,” Genovesi said.

(Reporting by Jeffrey Dastin; Editing by Alwyn Scott and Cynthia Osterman)

Article source: http://www.reuters.com/article/2014/10/15/us-usa-airlines-stocks-idUSKCN0I429U20141015

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