Sector Snap: Airlines rise

Oil futures contracts lost $1.33 to $135.41 on the New York Mercantile Exchange, as OPEC lowered its global demand outlook and the dollar gained against the euro.

The AMEX Airlines Index rose 3.4 percent, with all but one of its 14 component stocks up.

US Airways was the biggest percentage gainer--up 40 cents, or 14.9 percent, at $3.09. On Thursday the carrier said it try to offset rising fuel costs by cutting 1,700 jobs and joining other airlines charging passengers $15 to check their first bag. Merrill Lynch upgraded US Airways to "Buy" from "Neutral."

Continental Airlines shares rose 95 cents, or 7.6 percent, to $13.41, after Soleil Securities raised it to "Buy" from Hold." Continental announced service reductions on Thursday.

Shares of AMR Corp., parent of American Airlines, rose 21 cents, or 4 percent, to $5.43. Delta shares added 17 cents, or 3.3 percent, at $5.31. JetBlue picked up 4 cents at $3.84, and Southwest Airlines rose 36 cents, or 2.7 percent, to $13.90. Northwest Airlines gained 19 cents, or 3.2 percent, at $6.19. UAL Corp., parent of United Airlines, rose 33 cents, or 5.2 percent, to $6.64.