Sector Snap: Airlines fall

Oil prices climbed on fears that Gustav, despite being downgraded from a hurricane to a tropical storm, could still hamper drilling operations in the Gulf of Mexico.

Shell said Wednesday morning that it had begun evacuating 300 nonessential workers from Gulf rigs, although it said the moves wouldn't affect production.

Separately, the Energy Information Administration said U.S. crude supplies fell unexpectedly last week.

In morning trading on the New York Mercantile Exchange, light, sweet crude for October delivery rose $2.82 to $119.09 per barrel, which threatened to cause jet fuel prices to rise.

As has been the recent pattern, most airline stocks moved in the opposite direction of oil prices.

The Amex Airline Index fell 1.14 points, or 5 percent, to 21.81.

Shares of United Airlines parent UAL Corp. fell $1.27, or 11.4 percent, to $9.88; Northwest Airlines Corp. shares dropped 98 cents, or 10.3 percent, to $8.57; and Delta Air Lines Inc. dropped 73 cents, or 9.2 percent, to $7.21 in morning trading.

Shares of AMR Corp., the parent of American Airlines, the nation's largest carrier, lost 57 cents, or 5.9 percent, to $9.04.

Continental Airlines Inc. shares fell 79 cents, or 5.3 percent, to $14.04; shares of US Airways Group Inc. dropped 63 cents, or 8.6 percent, to $6.71.