Two airline stocks,

AMR

(AMR)

and

Delta

(DAL) - Get Report

, were soaring Thursday after avoiding worst-case scenarios.

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AMR was recently up 96 cents, or 23%, to $5.19 after securing a last-minute wage pact with its flight attendants that allowed it to avoid a bankruptcy filing. The union late Wednesday agreed to steep wage cuts that along with similar pacts from two other unions will help Delta cut $1.8 billion out of its annual cost structure.

The vote, which reversed a ballot Tuesday rejecting the concessions, spared the airline an immediate reorganization, but company officials warned that the troubles were far from over.

"I must caution, however, as I've said before -- we are not out of the woods yet," said CEO Donald Carty.

Delta, meanwhile, was up $1.01, or 10%, to $11.50, after posting a loss that, while alarmingly large, was narrower than analysts had predicted. The company also said it was furloughing 200 more pilots and reducing capacity in an effort to cope with weakened demand.

The airline lost $466 million, or $3.81 a share, in the latest quarter, compared with a loss of $397 million, or $3.25 a share, last year. The latest-quarter loss was $426 million, or $3.49 a share, before various items, narrower than the $3.51 a share analysts polled by First Call were expecting.

"Even as we face the greatest financial crisis in Delta's history, which is deepened by the impact of military action in Iraq, Delta continues to successfully reduce costs, preserve liquidity and implement the strategic elements of our long-term plan for survival," the company said in a press release. Delta said the war took about $125 million out of its operating revenue during the quarter.

Delta had $2.5 billion in cash and short-term investments at the end of the quarter.