Shares of Continental (CAL) are under pressure today after the airline lost a plane in a 48-person crash near Buffalo, NY. While the market is down slightly, in general, its taking a 4% hit, suggesting a connection.
Remember, shares of US Air dipped when news broke of the crash landing in the Hudson, but after people learned that there were no fatalities, thanks to Capt. Sully’s heroic landing, the stock spiked up. We’ve never seen any study of longterm correlation between an airline’s performance or a single crash, but if anyone knows of such research, we’d love to see it. Pass it along.