US airline stocks rally. American Airlines, US Air lead the way

US airline stocks were mostly sharply higher on Monday, led by US Airways (+5.2%) and American Airlines (+4.6%), as oil prices eased with the political tensions in Egypt. New York oil futures closed down 1.5% to USD87.72 per barrel.

Southwest reported traffic (RPMs) surged 13.2% year-on-year to 6.2 billion in Jan-2011, while capacity (ASMs) rose 7.5%, leading to a 3.9 ppts increase in load factor to 76.0%. For Jan-2011, passenger revenue per ASM is estimated to have increased in the 8-9% range year-on-year. Southwest's shares gained 2.6%.

Selected North American airlines daily share price movements (% change): 07-Feb-2011