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Airline Stocks Rise on Strong Reports

Tuesday, October 04, 2005 11:55:38 AM

CHICAGO (AP) - Shares of most major airlines rose Tuesday on reports of strong passenger traffic in September.

Continental Airlines Inc. said late Monday that it expects to post a modest profit in the third quarter, as a 9.8 percent increase in traffic boosted revenue enough to more than offset higher fuel prices and the cost of disruptions from hurricanes. The Houston-based airline said problems related to Hurricane Rita would hurt September operations by about $25 million.

American Airlines, a unit of AMR Corp., Fort Worth, Texas, said September traffic rose 9.1 percent. Despite improved traffic numbers, the airline said the hurricanes, and the soaring price of jet fuel, would have a "significant negative impact on American's third-quarter results. But the company said it hadn't changed earlier projections for cost and revenue in the third quarter.


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