US airline stocks have ended a challenging year in the red with 2012 expected to be just as difficult reported MarketWatch.

Withering demand and concerns for economic growth because of the debt problems that have gripped Europe and the U.S has seen a tumble of more than 31 per cent in 2011 for the The NYSE Arca Airline Index.

Shares of Delta, United Continental Holdings, US Airways Group all saw a loss.  Budget carriers such as JetBlue, Southwest and Hawaiian Holdings also saw a decline.  AMR Corp, the parent company for American Airlines, went bankrupt in November 2011 and will have its shares delisted in early January.

Airline investors with Alaskan Air Group saw a brighter year, with shares gaining 32.5 per cent, a result partly due to the reduction in its non-fuel costs.

Bond analyst with Gimme Credit Vicki Bryan stated it would be another tough year for airlines. 
“We had a rebound in fare pricing earlier this year, but we started to lose that as demand faded. That’s going to continue next year, so even if fuel stays where it is, the weaker pricing will challenge margins and profits,” Ms Bryan said.