CHICAGO (Reuters) - Shares of U.S. airlines tumbled on Monday on speculation that bookings may suffer more now that the nation's economy has officially been declared to be in recession.
Losses for the Amex airline index .XAL were 8.67 percent in afternoon trade despite an 8 percent drop in the price of crude oil.
The slump in airline stocks outpaced the Dow Jones industrial average .DJI, which shed 5.27 percent, as market watchers questioned the resilience of travel demand in a weak economy.
"Is consumer demand going to fall off? Are there going to be fewer passengers," said Basili Alukos, equity analyst at Morningstar.
UAL Corp (UAUA.O:), parent of United Airlines, saw its stock fall steeper than other airlines' on news that the company has offered $200 million in shares.
UAL shares were down 21.42 percent at $8.84 on Nasdaq. Shares of US Airways Group (LCC.N:) were down 14.77 percent at $5.08 on the New York Stock Exchange.
Delta Air Lines (DAL.N:) shares were down 10.44 percent at $7.89 on the NYSE.
(Reporting by Kyle Peterson; Editing by Bernard Orr)
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