Airline Stocks Extend Rally as Oil Drops: United Up 7%, American Airlines Up 6%

Airline shares climbed for a second straight session on Monday as crude oil prices fell. United Airlines rose about 7% to $120.16, American Airlines gained about 6% to $13.99 and JetBlue advanced roughly 7% to $3.92 in morning trading.

Brent crude fell 5.8% to $92.57 on Monday, and slipped further to around $90.58 early Tuesday, after President Trump said military action against Iran was not necessary at this point. Lower fuel costs, one of the largest expenses for carriers, along with renewed risk appetite across the market, helped lift the group.

Fuel prices remain a key swing factor for airline earnings, and the sector has moved sharply in both directions as oil has reacted to geopolitical headlines.