Airline shares climb after carriers lift fares
NEW YORK |
NEW YORK (Reuters) - Shares of U.S. airlines rose modestly on Friday after news that five major carriers were increased air fares, adding to signs that the industry is turning a corner after a severe recession.
Continental Airlines CAL.N and Delta Air Lines (DAL.N) matched a $10 round-trip air-fare hike Friday that was initiated by UAL Corp's United Airlines UAUA.O on Wednesday night, according to Rick Seaney, chief executive of FareCompare.com, which tracks ticket prices.
American Airlines, a unit of AMR Corp AMR.N, and US Airways (LCC.N) also lifted prices on Thursday, Seaney said.
Low-cost carriers did not participate in the fare increase.
In recent weeks, the airline industry has reported higher traffic and greater demand, particularly from lucrative business travelers. The industry failed in its first attempt to lift fares in 2010, Seaney said in an email Thursday night.
US Airways jumped more than 6 percent to $6.73 on the New York Stock Exchange and earlier hit a year-high of $6.91.
Continental shares rose 4 percent, or 77 cents, to $19.63 in afternoon trading, while Delta shares were up about 3 percent to $12.18.
United shares were up 1 percent to $15.83 on the Nasdaq and reached a year-high of $15.98.
(Reporting by Deepa Seetharaman; Editing by Steve Orlofsky)
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