Sector Snap: Airline Stocks Rise

NEW YORK (AP) — U.S. airline stocks advanced Friday as a rosy outlook from the Fed chairman trumped another spike in oil prices.

Federal Reserve Chairman Ben Bernanke said the recession could be nearly over — "The prospects for a return to growth in the near term appear good" — even though credit for consumers and businesses remained tight.

The comments, plus a larger-than-expected rise in home sales, pushed the Dow Jones industrial average up 138.90 points, or 1.5 percent, to 9,488.95 at midday.

Airline stocks followed. The Amex Airline Index rose 2.7 percent to 23.68, with all of its 13 component stocks higher in midday trading.

The boost for airlines came despite another jump in oil prices, which hit their highest level this year.

Benchmark crude for October delivery was up $1.29 at $74.20 on the New York Mercantile Exchange after peaking at $74.48 earlier in the day. Normally high oil prices are bad for airline stocks because they presage higher expenses for jet fuel.