Seeking Alpha Seeking Alpha Portfolio App for iPad  This
weekend, airline executives are probably having trouble
suppressing their glee over the recent drop in oil prices.
However, you wouldn't know it, based on the price action in
airline stocks last week. Most major airline stocks dropped by
5-10% between Thursday and Friday. United Continental (UAL)
dropped by roughly 13% from its Wednesday close to its Friday
close. The media blamed the selloff on Delta's (DAL)
announcement that it would be cutting capacity more than
expected in the fall. This was particularly bizarre, given that
Delta reasserted that demand for summer travel remains strong.
While the headlines out of Europe are obviously disturbing, the
airlines are much better at matching capacity to demand today,
relative to 2008 or 2009. In this vein, Delta's announcement
should be comforting, in that it shows that the airlines are
tweaking capacity proactively rather than waiting until they
start losing money to cut back. United Continental made a s