Oil pullback helps airline stocks

NEW YORK (MarketWatch) — A pullback in oil prices rallied airline shares on
Thursday. The Amex Airline Index jumped almost 2% to 20.38 points with all but
one of its 14 components trading up. Crude spot prices were at $116.15 a barrel
on the New York Mercantile Exchange, down $2.15. Carriers have been getting
slammed this earnings season by the high cost of fuel, wiping away profits and
eating into cash balances. U.S. Airways on Thursday was no exception, reporting a
wider-than expected loss for the first quarter because of jet fuel costs.
However, the company also announced plans to reduce capacity, modify its fare
structure and reduce capital spending. U.S. Airways shares rose about 6% to
$6.60.

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Technorati Tags: Airline Index, Airline Stocks, Amex, Cash Balances, Earnings Season, Fare Structure, First Quarter, Jet Fuel, New York Mercantile, New York Mercantile Exchange, Oil Prices, Oil Stocks, Profits, Pullback, Shares, U S Airways, York Mercantile Exchange