UAL Corporation (NASDAQ:UAUA) and most of the major airlines are trading lower this morning. The airline sector has had a terrific rally recently soaring to new 52 week highs.
Many of the airlines have been reporting an increase in passenger revenue during the first quarter. However, the rumors of possible consolidation in the industry have been one of the main catalysts for the strong rally from early February.
The one negative for the airline sector is the high price of fuel. Currently spot crude is trading above 82.00 a barrel and jet fuel is rising. Most airlines have not hedged their energy prices with the exception of Southwest Airlines Co (NYSE:LUV).
UAL Corp will have short term intraday support at the 19.40 level.