Sector snap: Airline stocks mostly decline as oil stays high

The Amex Airline Index slipped 1.1 percent to 22.75 around midday, giving up gains earlier in the session. If the declines hold, it will be the 14-stock index's fourth straight day of declines.

The broader market also moved lower, with the Dow Jones industrial average sinking 0.4 percent to 12,963.19.

Investors searched for direction after oil prices shot to a new record but then wavered following the release of government data that painted a mixed picture of U.S. petroleum supplies. Light, sweet crude for June delivery rose to a new trading record of $122.81 on the New York Mercantile Exchange, but later traded down 27 cents to $121.57 a barrel.

Airline stocks are sensitive to movements in the oil market because fuel represents many airlines' biggest expense.

Another government report brought little joy for the industry. Data from the Transportation Department showed that almost 30 percent of domestic flights were late or canceled in March, the worst-ever showing for the month.

AMR Corp.'s American Airlines, the market leader, posted the worst performance, with only 62 percent of flights arriving on time. The figures do not account for the 3,300 flights American was forced to cancel to reinspect wiring aboard some planes in early April.

AMR shares rose 2 cents to $8.87. Other gainers included No. 2 U.S. carrier UAL Corp., up 4 cents to $14.19.

Most airline stocks fell, however. Delta Air Lines Inc. declined 7 cents to $7.79, and Continental Airlines Inc. sank 20 cents to $17.37.

Regional carrier ExpressJet Holdings Inc. also declined even after Calyon Securities analyst Ray Neidl upgraded the stock to "Add" from "Neutral," saying he believes the carrier's proposed acquisition by SkyWest Inc. will eventually go through.