Shares of U.S. airlines rose smartly on Monday, bolstered by a rally in the broader market.The stock market was boosted by upbeat economic reports on manufacturing and personal incomes that raised hopes for a quicker recovery.
The Dow Jones industrial average gained 118.2 points, or 1.2 percent, to finish at 10,185.53. Energy stocks led the way after a strong earnings report from Exxon Mobil Corp. and a $1.54 a barrel increase in crude oil prices on the New York Mercantile Exchange.
Airline stocks often fall when oil prices rise because fuel is one of their biggest costs. But the surge in energy stocks didn't hurt airlines on Monday.
The Amex airlines index rose 3.4 percent, with all 13 of its components closing higher.
Shares of American Airlines parent AMR Corp. rose 50 cents, or 7.2 percent, to $7.42, despite bad news from the Federal Aviation Administration. The FAA moved to fine AMR's American Eagle unit $2.5 million for allegedly failing to keep close enough tabs on weight and balance of baggage and other cargo, which can lead to problems controlling planes on takeoff and landing.
Continental Airlines Inc. gained 90 cents, or 4.9 percent, to $19.29; United Airlines parent UAL Corp. rose 52 cents, or 4.3 percent, to $12.75; Delta Air Lines Inc. added 40 cents, or 3.3 percent, to $12.63; Southwest Airlines Co. picked up 24 cents, or 2.1 percent, to $11.57; and US Airways Group Inc. rose 29 cents, or 5.5 percent, to $5.60.
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