Fuel Costs Trump Delta Fare Cap

Citing skyrocketing fuel costs, Delta Air Lines (DAL Quote) is relaxing a controversial fare cap it established early this year.

The move may irritate customers who expected the airline to stand firm on the pricing initiative, which cut some fares in half. But it's likely to bolster revenue for the Atlanta-based airline and its rivals, something investors like.

Delta shares jumped as much as 13% on the news and recently traded up 29 cents, or 8.4%, at $3.73. Other airline stocks surged, too, lifting the Amex Airline Index by 4.5% in a rally that also likely benefited from Thursday's decline in crude oil futures. ...