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Airline shares rally alongside Dow, Nasdaq

1/04/2008 - 19:29

CHICAGO (Reuters) - U.S. airline shares vaulted higher alongside the broader stock market on Tuesday with AMR Corp , parent of American Airlines, gaining more than 9 percent.

One analyst said airline stocks were simply tracking the Dow Jones industrial average <.DJI> and the Nasdaq Composite Index <.IXIC> -- up 2.3 percent and 2.7 percent, respectively.

"I think it's the overall market being up," said Jim Corridore, equity analyst at Standard & Poor's. "The entire market is giddy about the prospects of the economy improving."

The Amex airline index was up 2.7 percent.

AMR was up 8.1 percent at $9.75 in afternoon trade on the New York Stock Exchange. UAL Corp , parent of United Airlines, was up 5 percent at $22.61 on Nasdaq. Delta Air Lines rose 7 percent to $9.20 on the NYSE.

(Reporting by Kyle Peterson; Editing by Braden Reddall)


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