ADRs in Focus: Latin American airline ADRs sink on oil
NEW YORK—U.S.-traded shares of airlines based in Latin America mostly sank on Thursday as oil prices crept to yet another record high.
On the Nymex, light, sweet crude for June delivery rose 16 cents to settle at a record of $123.69 a barrel on the New York Mercantile Exchange Thursday, wiping out a decline earlier in the day.
The higher price sent Latin American airline ADRs lower. Airline shares often trade opposite the price of oil, as fuel represents one of the industry's biggest costs.
Chile's Lan Airlines SA gave up 41 cents, or 3.4 percent, to $11.83. Lan's president Jorge Award said at a conference Thursday its costs would increase by $500 million this year as a results of higher oil prices, according to Dow Jones Newswires.
Brazil's Tam SA fell 34 cents to $22.32. Gol Linhas Aereas Inteligentes SA, also based in Brazil, regained losses during the session to end up 5 cents at $16.19.
Brazilian jet maker Embraer lost 36 cents to $40.44.
Copa Holdings S.A., the parent of Panama-based Copa Airlines and Aero Republica, fell $1.62, or 4.3 percent, to $36.41.
The Bank of New York Latin American ADR market gained Thursday, adding 2.86 points to 469.43, according to preliminary calculations.
The Bank of New York Composite ADR index gained 1.45 points to 183.73.
ADRs, or American Depositary Receipts, are securities that allow foreign companies to trade on U.S. markets.
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