Airline shares rise, and several set new 52-week highs; Alaska Air Group gets a boost

Sector Snap: Airline stocks rise

MINNEAPOLIS — Shares of the U.S. airlines continued to rise on Monday, with several carriers setting new highs for the past year.

Broader markets were up about a percentage point. The Amex Airline Index rose 2.6 percent, with 11 of 13 component stocks higher.

Oil dropped more than $1 per barrel to about $78.50.

American Airlines parent AMR Corp. rose 36 cents, or 3.9 percent, to $9.55, after trading at a new 52-week high of $9.65. United Airlines parent UAL Corp. was at $18.20, up $1.05, or 6.1 percent. Earlier it hit a new 52-week high of $18.43.

US Airways Group Inc. traded at a new high of $7.75 before easing back to $7.70, up 37 cents, or 5.1 percent, in afternoon trading.

Delta Air Lines Inc. and Continental Airlines Inc. were both close to yearly highs, with Delta up 43 cents, or 3.3 percent, to $13.35, and Continental up 64 cents, or 3.1 percent, at $21.30.

Southwest Airlines Co. also set a new 52-week high at $12.89. In afternoon trading it was at $12.79 after rising 21 cents. JetBlue Airways Corp. added 5 cents at $5.33. AirTran Holdings Inc. rose 26 cents, or 5.4 percent, to $5.08.

Alaska Air Group Inc. benefited as Stifel Nicolaus analyst Hunter Keay initiated coverage with a “Buy” rating and a $51 price target. Shares rose $2.40, or 6.9 percent, to $37.40.

Keay wrote that Alaska Air “is underappreciated by investors.” Discount carriers are reducing capacity on flights that compete with Alaska Air, which should allow the company to raise fares just as demand is improving, he wrote.