Sector Snap: Airline stocks mixed

NEW YORK - Airline stocks rallied briefly but closed with mixed results Friday despite a rebound in the broader market, as oil prices inched higher and Delta warned of a slowdown in travel demand amid the global financial crisis.

Friday's trading finished a dismal week for the stock of U.S. airlines.

Shares of United Airlines parent UAL Corp. plunged 25 percent during the week, Southwest dropped 21.6 percent, American Airlines parent AMR Corp. fell 14.1 and Delta lost 12.6 percent. Continental escaped with just a 3.4 percent loss for the week.

In trading Friday, the Amex airline index fell 0.3 percent, as seven of its airline stocks gained and six lost.

Oil prices rebounded after hitting their lowest levels since May 2005.

Light, sweet crude for January delivery rose 51 cents to settle at $49.93 a barrel on the New York Mercantile Exchange. Earlier, in electronic trading, the price fell to $48.25.

Higher oil prices have been bad for airline stocks. For a time Friday the carriers followed an updraft created by the broader market, which rose after two days of runaway selling, but later in the day most airline stocks headed down.

Shares of Delta Air Lines Inc., which said in a regulatory filing that it expects to cut capacity next year because travel demand has been falling in the fourth quarter, fell 20 cents, or 2.9 percent, to close at $6.82; and AMR lost 16 cents, 2.3 percent, to $6.78.

Other losers were Alaska Air Group Inc., down $3.12, or 14 percent, to $18.89; AirTran Holdings Inc., which dropped 39 cents, or 13 percent, to $2.67; and JetBlue Airways Corp., off 2 cents to $3.97.

Gainers included Continental Airlines Inc., up 71 cents, or 6.7 percent, to $11.30; Southwest Airlines Co., which gained 20 cents, 2.6 percent, to $7.96; US Airways Group Inc., adding 7 cents to $4.48; and UAL, up 14 cents to $7.67.

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