After seeing considerable strength in the previous session, airline stocks have shown a notable move back to the downside during trading on Friday. United Continental (UAL) has helped to lead the sector lower after providing disappointing guidance.
Reflecting the weakness among airline stocks, the NYSE Arca Airline Index is down by 2.8 percent in late morning trading. The index surged up by 2.4 percent on Thursday, reaching its best closing level in almost a month.
United Continental is turning in one of the sector's worst performances, with the airline down by 9.9 percent after ending the previous session at a one-month closing high.
The loss by United Continental come after the company predicted that flying capacity would increase by about 1 percent in the second quarter, towards the low end of its previous guidance for an increase between 0.8 percent and 1.8 percent.
United Continental also said it expects passenger revenue per available seat mile to increase by 8.3 to 9.3 percent in the second quarter compared to the same quarter a year ago.
Among airline stocks, Delta Air Lines (DAL) and American Airlines parent AMR Corp. (AMR) are also posting significant losses, falling by 6.4 percent and 5.8 percent, respectively.
The sharp pullback by the sector also reflects notable losses by US Airways (LCC), Hawaiian Airlines (HA), and JetBlue (JBLU).
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