NEW YORK (MarketWatch) -- Airline stocks got a boost Friday as the U.S. unemployment rate held steady at 9.7% in February with smaller monthly losses in nonfarm payrolls.
Investors continued to assess airlines' traffic results for the month, with results showing a slower loss in demand for air travel as well as some growth on the international side. Several carriers also detailed the impact from the month's severe snowstorms on their revenues.
/quotes/comstock/10t!xal.x XAL 36.60, +0.11, +0.30%
The NYSE Arca Airline Index /quotes/comstock/10t!xal.x (XAL 36.60, +0.11, +0.30%) rose nearly 1% to 36.78 points with all but two of its 13 components trading higher. In the last 52 weeks, the sector benchmark has moved in a range of 37.72 to 12.62 points.
Shares of American Airlines parent AMR Corp. /quotes/comstock/13*!amr/quotes/nls/amr (AMR 9.29, +0.11, +1.20%) added 1% to $9.27, while US Airways /quotes/comstock/13*!lcc/quotes/nls/lcc (LCC 7.43, +0.11, +1.50%) rose 1.4% to $7.42 and Continental Airlines /quotes/comstock/13*!cal/quotes/nls/cal (CAL 20.64, +0.14, +0.68%) climbed 1.3% to $20.76.
The Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (INDU 10,530, +85.48, +0.82%) gained more than 0.5% as the February unemployment rate and payrolls loss came in better than expected. Economists also predicted the trend of smaller job losses would lead to net gains in employment by the second quarter. Read Economic Report.
Outside of the index, Hawaiian Airlines /quotes/comstock/15*!ha/quotes/nls/ha (HA 7.85, +0.07, +0.90%) is making a grab for two open gates at Tokyo's Haneda Airport, taking on some of the world's largest airlines in the process. Read more about Hawaiian Airlines
Snow bruises February revenue
AM Report: Dissecting the Jobs Report
The News Hub panel argues what effect, if any, last month's snow storm had on the February jobs report.
Airlines' February traffic results have been showing a gradual increase in demand as well as the impact of several blizzards in the Northeast that led to airport closings and hundred of cancellations.
Earlier Friday, Southwest Airlines /quotes/comstock/13*!luv/quotes/nls/luv (LUV 12.59, -0.01, -0.08%) said weather-related flight cancellations during the month resulted in an estimated $15 million hit on passenger revenues.
Earlier in the week, US Airways said it suffered $30 million in lost revenue as the unusual weather led to hundred of cancellations, while Continental put the impact at $25 million.
/quotes/comstock/13*!dal/quotes/nls/dal DAL 12.72, -0.07, -0.51%
/quotes/comstock/15*!uaua/quotes/nls/uaua UAUA 18.25, +0.19, +1.05%
/quotes/comstock/13*!amr/quotes/nls/amr AMR 9.29, +0.11, +1.20%
American and Delta Air Lines /quotes/comstock/13*!dal/quotes/nls/dal (DAL 12.72, -0.07, -0.51%) were also affected, but they didn't release any data. Some analysts expect the total impact from the storms could easily exceed $100 million.
But aside from the one-time hit to revenues, airlines and analysts said the demand environment continues to improve along with the economy.
In a recent note from Macquarie Research, analyst Robert Stallard noted U.S. air-traffic demand rebounded to a 1.6% increase in January from a 1.2% decrease in December, with the majority of airlines seeing unit revenue growth.
Meanwhile, the carriers took advantage of the slower winter months to reduce capacity further, cutting out 2.3% for January. That followed a 3.7% reduction in December and a 4.7% cut in November, Stallard said.
Investors continued to assess airlines' traffic results for the month, with results showing a slower loss in demand for air travel as well as some growth on the international side. Several carriers also detailed the impact from the month's severe snowstorms on their revenues.
/quotes/comstock/10t!xal.x XAL 36.60, +0.11, +0.30%
The NYSE Arca Airline Index /quotes/comstock/10t!xal.x (XAL 36.60, +0.11, +0.30%) rose nearly 1% to 36.78 points with all but two of its 13 components trading higher. In the last 52 weeks, the sector benchmark has moved in a range of 37.72 to 12.62 points.
Shares of American Airlines parent AMR Corp. /quotes/comstock/13*!amr/quotes/nls/amr (AMR 9.29, +0.11, +1.20%) added 1% to $9.27, while US Airways /quotes/comstock/13*!lcc/quotes/nls/lcc (LCC 7.43, +0.11, +1.50%) rose 1.4% to $7.42 and Continental Airlines /quotes/comstock/13*!cal/quotes/nls/cal (CAL 20.64, +0.14, +0.68%) climbed 1.3% to $20.76.
The Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (INDU 10,530, +85.48, +0.82%) gained more than 0.5% as the February unemployment rate and payrolls loss came in better than expected. Economists also predicted the trend of smaller job losses would lead to net gains in employment by the second quarter. Read Economic Report.
Outside of the index, Hawaiian Airlines /quotes/comstock/15*!ha/quotes/nls/ha (HA 7.85, +0.07, +0.90%) is making a grab for two open gates at Tokyo's Haneda Airport, taking on some of the world's largest airlines in the process. Read more about Hawaiian Airlines
Snow bruises February revenue
AM Report: Dissecting the Jobs Report
The News Hub panel argues what effect, if any, last month's snow storm had on the February jobs report.
Airlines' February traffic results have been showing a gradual increase in demand as well as the impact of several blizzards in the Northeast that led to airport closings and hundred of cancellations.
Earlier Friday, Southwest Airlines /quotes/comstock/13*!luv/quotes/nls/luv (LUV 12.59, -0.01, -0.08%) said weather-related flight cancellations during the month resulted in an estimated $15 million hit on passenger revenues.
Earlier in the week, US Airways said it suffered $30 million in lost revenue as the unusual weather led to hundred of cancellations, while Continental put the impact at $25 million.
/quotes/comstock/13*!dal/quotes/nls/dal DAL 12.72, -0.07, -0.51%
/quotes/comstock/15*!uaua/quotes/nls/uaua UAUA 18.25, +0.19, +1.05%
/quotes/comstock/13*!amr/quotes/nls/amr AMR 9.29, +0.11, +1.20%
American and Delta Air Lines /quotes/comstock/13*!dal/quotes/nls/dal (DAL 12.72, -0.07, -0.51%) were also affected, but they didn't release any data. Some analysts expect the total impact from the storms could easily exceed $100 million.
But aside from the one-time hit to revenues, airlines and analysts said the demand environment continues to improve along with the economy.
In a recent note from Macquarie Research, analyst Robert Stallard noted U.S. air-traffic demand rebounded to a 1.6% increase in January from a 1.2% decrease in December, with the majority of airlines seeing unit revenue growth.
Meanwhile, the carriers took advantage of the slower winter months to reduce capacity further, cutting out 2.3% for January. That followed a 3.7% reduction in December and a 4.7% cut in November, Stallard said.
