Sector Snaps: Airlines volatile after losses

The Amex Airline Index sank 1.1 percent to 20.28, although a number of its components posted gains throughout the morning. Earlier, the basket of 14 airline stocks continued the previous day's slide, tumbling to a new low of 20.12.

Oil prices added to the uncertainty, wavering after the government said crude supplies rose more than expected last week. Light, sweet crude for June delivery rose 17 cents to $118.24 a barrel on the New York Mercantile Exchange, a day after the May contract set a trading record of $119.90 before expiring.

Airline stocks are sensitive to movements in the energy markets because fuel represents one of the industry's biggest costs.

Earlier in the day, Delta Air Lines Inc. and Northwest Airlines Corp. posted combined first-quarter losses of more than $10 billion on charges related to higher fuel prices and their declining market value. Last week, the carriers announced plans to combine to create the world's largest airline.

Delta President and Chief Financial Officer Ed Bastian told employees other airlines could also face large adjustments.

Delta shares added 4 cents to $6.84, while Northwest fell 3 cents to $7.44.

United Airlines parent UAL Corp., which tumbled by more than a third after posting big losses Tuesday, jumped 42 cents, or 3.1 percent, to $13.97.

Other gainers included JetBlue Airways Corp., which a day earlier posted a narrower-than-expected loss. Calyon Securities analyst Ray Neidl noted the company's strong unit revenue growth and forecast it will now post a narrow profit this year rather than a loss.

"It appears that efforts to raise fares and generate ancillary revenue have been successful," he said in a note to investors. Neidl rates the stock "Neutral."

JetBlue shares rose 8 cents to $4.73.

Among the decliners, Continental Airlines Inc. lost 78 cents, or 4.6 percent, to $16.42 after hitting a new multiyear low of $15.82 earlier. US Airways Group Inc. fell 54 cents, or 7.8 percent, to $6.30, after earlier hitting a new low of $6.25.