Airlines lead FTSE 100 higher

Airlines have led the risers on the FTSE 100 this afternoon after a shaky start, as the price of oil continued its slide.

The index closed 17.90 points higher at 5,620.70 after opening lower this morning.

Hurricane Gustav failed to cause as much damage in the Mexican Gulf as had been feared and consequently oil prices reversed after recent spikes.

By this afternoon, crude oil had slipped to $109 per barrel and analysts believe it could fall back to $100 a barrel or less, easing pressures on industries where oil is an important cost factor.

Shares in Thomas Cook reacted strongly to the news, climbing 7.29 per cent to 246.5p, while shares in TUI Travel rose 5.9 per cent to 229p.

Retailers, which have seen their share prices move ever lower in recent weeks, were also among the risers today.

Grocer Sainsbury saw its shares rise 6.09 per cent to 370p and Next shares climbed 5.59 per cent to £11.33.

However, energy and mining stocks fell with Anglo American down 4.82 per cent to £26.46 and BG Group down 3.95 per cent to £11.19.