US airline shares fell broadly on Tuesday, with US Airways' stock leading the decline, as the price of oil rallied.
US Airways shares dropped 11.35 percent to $7.89 on the New York Stock Exchange. Shares of United Continental were down 9.11 percent at $21.24, and Delta Air Lines' shares fell 7.2 percent to $10.05, both on the NYSE.
US crude oil futures rose USD$1.52 to USD$104.76 after trading beyond USD$105 for the first time since May 2011. The gains followed news on Monday that Iran halted exports to British and French companies ahead of a European Union embargo.
Jet fuel is one of the highest costs for airlines. US Airways, which does hedge its fuel consumption to offset shocks, is more vulnerable than rivals to price spikes, said Basili Alukos, an airline analyst at Morningstar.
The airline industry has been struggling to maintain stability after a years-long downturn that was exacerbated by volatile fuel prices.