Innovation Update

Sector Snap: Airlines Mostly Up After 1Q Results

Stock quotes in this article: ALK , JBLU , LCC  

NEW YORK (AP) — Airline stocks advanced Thursday after first-quarter earnings reports from US Airways Group Inc. and JetBlue Airways Corp. exceeded Wall Street's expectations.

US Airways said its first-quarter loss shrank as some of its old fuel hedging contracts turned positive, and JetBlue posted a profit in the period as it let go of some its own fuel contracts. Both reported results above Wall Street's expectations.

Standard & Poor's Airlines Analyst Jim Corridore kept his "Hold" rating on US Airways, but cut his price target to $6 from $9. He also lowered his profit estimate for the full-year dramatically to 67 cents from $2.30.

Bob McAdoo, a senior research analyst with Avondale Partners, maintained his "Market Outperform" rating on JetBlue, noting the company expects to post a profit in every quarter this year. But he significantly lowered his full-year earnings estimate citing lower revenue assumptions due to the steep downturn in industrywide demand.

Shares of US Airways jumped 27 cents, or 6.4 percent, to $4.64. JetBlue rose 5 cents to $5.63.

Another airline company reporting earnings Thursday was Alaska Air Group Inc. The parent of Alaska Airlines and Horizon Air reported a narrowed first-quarter loss and said it will start charging for a first checked bag like many of its peers.

But its results fell short of Wall Street's expectations, and the stock sank in afternoon trading.

Alaska lost $2.04, or 10.2 percent, to $17.80 in afternoon trading.

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Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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