Out of the Gate: Airline shares decline

Light, sweet crude for August delivery rose $3.46 to $143.67 a barrel in electronic trading on the New York Mercantile Exchange. Shares of airlines often trade opposite the price of crude because fuel represents one of the industry's biggest costs.

Separately, Soleil Securities Group analyst James M. Higgins widened his 2008 and 2009 loss estimate on Delta Air Lines Inc. due to higher fuel prices. However, he said Delta remains for him the best combination of upside leverage and downside protection in the airline group, and backed a "Buy' rating on the stock.

He now expects a loss of $2.20 per share instead of $1.20 for 2008, he said in a note to investors. For 2009, he sees a loss of 25 cents per share in place of 10 cents. Analysts polled by Thomson Financial expect a 2008 loss of $1.58 per share and a 2009 loss of 97 cents per share, on average.

Shares of Delta fell 15 cents, or 2.7 percent, to $5.37.

UAL Corp. which owns United Airlines, declined 13 cents, or 2.3 percent, to $5.43. Continental Airlines Inc. gave up 33 cents, or 3.1 percent, to $10.20.

AMR Corp., which owns American Airlines, lost 13 cents, or 2.4 percent, to $5.22. Northwest Airlines Corp. slipped 7 cents to $6.24.