Major airline shares rose Thursday after Delta Air Lines Inc. sparked the industry's latest fare increase and oil prices took a break from their upward march.
The Amex Airline Index rose 0.5 percent to 22.26 at midday. The broader market also advanced, with the Dow Jones industrial average up 0.3 percent to 12,852.21.
Oil prices eased but remained within range of record highs struck this week. Light, sweet crude for June delivery fell $1.32 to $122.21 a barrel on the New York Mercantile Exchange. Prices rose as high as a record $123.93 on Wednesday.
Airline shares often move opposite oil prices because fuel represents one of the industry's biggest costs.
Delta took the latest step in trying to recoup some of those energy costs by raising its fuel surcharge on many routes by $20 roundtrip late Wednesday night. AMR Corp.'s American Airlines matched the increase Thursday.
"Oddly enough, the total of this fuel surcharge increase combined with taxes and fees is now larger than the actual base airfare on several short haul domestic flights," Rick Seaney, the chief executive of airfare research site FareCompare.com, said in an e-mail.
Delta shares rose 9 cents to $7.76. AMR shares advanced 12 cents to $8.69.
Shares of other major carriers also rose. UAL Corp., parent of No. 2 U.S. carrier United Airlines, added 12 cents to $13.94. Budget carrier Southwest Airlines Co. gained 30 cents, or 2.3 percent $13.29.
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