Airline Stocks Soar on Falling Oil Prices - TheStreet

NEW YORK (

TheStreet

) -- Airline stocks surged Tuesday, lifted by a glowing UBS analyst's note and a second-straight day of falling oil prices.

Oil futures edged lower after the world's leading oil-producing nations opted to leave production volumes unchanged, a decision that could lead to short-term stability for energy prices after a volatile year.

Also on Tuesday, UBS analyst Kevin Crissey raised his 12-month stock-price targets on American Airlines' parent company,

AMR

(AMR)

, as well as

Continental Airlines

(CAL) - Get Report

,

Delta Air Lines,

(DAL) - Get Report

,

Southwest Airlines

(LUV) - Get Report

, and United Airlines parent

UAL

( UAUA).

Crissey also lifted his 2010 bottom-line expectations for

US Airways Group

(LCC)

, whose shares shot higher by 11.5% Tuesday to $5.10.

Among the other names, AMR closed up 6.5% to $8.10; Continental Airlines rose by 4.9% to end at $18.60; Delta Air Lines added 3.5% to $11.80; and Southwest Airlines edged up 1.2% to $11.50.

UAL -- which got the biggest price-target boost from the UBS analyst, to $24 from $15 -- gained 12.2% to $12.90.

Crissey wrote that even if travel demand doesn't continue to strengthen, airline passenger revenue could rise 1.5% in January and 4.5% in February.

-- Reported by Andrea Tse in New York

>>See our new stock quote page.

Follow TheStreet.com on

Twitter

and become a fan on

Facebook.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.