Sector Snap: Airline Shares Rise

MINNEAPOLIS (AP) — Airline shares rose slightly with the broader market on Tuesday after Continental said its costs were running slightly better than expected, and despite a rise in oil prices.

Continental Airlines Inc. shares rose 49 cents, or 5.5 percent, to $9.40. However, UBS analyst Kevin Crissey wrote in a note that booking trends "look dismal into August."

"Revenue is still the issue for Continental and the other airlines," he wrote.

And revenue isn't looking good. The International Air Transport Association reported on Tuesday that premium travel — the high-end fliers who bring airlines the most money — fell 22 percent in April. It estimated that revenue from those passengers fell even faster, down 44 percent.

Meanwhile oil prices rose above $72 a barrel after settling at $70.62 on Monday. The broader market was up slightly.

The Amex airline index rose 2.6 percent, with all of its components higher except JetBlue Airways Corp., which fell 2 cents to $4.12.

Shares of Delta Air Lines Inc. rose 29 cents, or 4.8 percent, to $6.39. American Airlines parent AMR Corp. rose 24 cents, or 5.4 percent, to $4.67, and United Airlines parent UAL Corp. rose 15 cents, or 4 percent, to $3.88. US Airways Group Inc. shares rose a dime, or 3.8 percent, to $2.71.

Southwest Airlines Co. shares rose 7 cents to $6.55, while AirTran Airways parent AirTran Holdings Inc. rose 44 cents, or 8.2 percent, to $5.80. Alaska Air Group shares rose 67 cents, or 4.1 percent, to $16.97.