April 27 (Bloomberg) -- U.S. airline stocks plunged, dragging a benchmark index to its biggest decline since 2001, on concern that the swine flu outbreak may damp travel demand.
The slide extended industry declines as the death toll from the new virus surpassed 100. The World Health Organization will raise its pandemic alert to an unprecedented level today, saying the disease is spreading across North America, two people familiar with the agency said.
Delta Air Lines Inc., the world’s largest carrier, fell $1.12, or 14 percent, to $6.76, at 10 a.m. in New York Stock Exchange composite trading. The Bloomberg U.S. Airlines Index tumbled as much as 15 percent, the most since Sept. 17, 2001.
“People are panicked, and you can see that,” Helane Becker, a New York-based analyst with Jesup & Lamont Securities, said in an interview. “I don’t think people will cancel. A lot of this is short lived and a knee-jerk reaction.”
U.S. airlines are staying on “heightened awareness” for travelers with possible swine flu symptoms while maintaining flight schedules to Mexico, where the outbreak is worst.
Passengers are being given the option to rebook Mexico trips without penalties or fees, and airlines are awaiting further direction from authorities including the WHO, spokesmen for U.S. carriers said.
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