Airline shares should be suffering badly with the oil price hovering around $135 a barrel, right? Until recently, the answer has been yes. But today, almost counter-intuitively, the top riser in the FTSE 100 is British Airways and in the FTSE 250, easyJet.
Traders said the increase in BA shares, up 9.5p to 212.25p, was mainly due to hopes that a potentially costly pilots' strike may be averted. This follows the news that the British Air Line Pilots' Association has withdrawn its court action against BA.
Douglas McNeill, transport analyst at Blue Oar, said: "The prospect of a nationwide strike was pretty awful, and it is reassuring to investors to know it is not going to happen."
As for easyJet, it has jumped 17p to 279.5p. The company is seeking a judicial review of the price setting regime for Gatwick Airport.
Overall, though, leading shares edged lower, with the FTSE 100 ending 16.5 points lower at 6181.6. The London Stock Exchange was the biggest faller, down 50p to £10.38 after its results, while there were signs of profit taking among some of the oil and mining companies.
Telecoms shares moved higher, with Cable & Wireless up 4.1p to 156.6p after it said it was considering a demerger later this year.
Vodafone climbed 4.9p to 163.5p ahead of its full-year results next week, adding 10 points to the leading index.
