Airline Stocks Take Off On American Airlines Outlook

Airline stocks took to the skies in pre-market action Wednesday following an upbeat report from American Airlines (NYSE: AAL).

The sector had been depressed of late partly over news Tuesday that Air France-KLM (OTC: AFLYY) cut its profit outlook by 12 percent.

American Airlines offered reassurance Wednesday that it expects second-quarter passenger revenue per available seat mile to grow 5.5 percent to 6.5 percent from a year earlier.

American gained more than five percent pre-market; Delta Air Lines (NYSE: DAL) followed with a gain of three percent to $37.55

United Continental (NYSE: UAL) rose 2.4 percent to $40.49 and Southwest Airlines (NYSE: LUV) was up three percent to $27.51.

The gains have held since Wednesday's opening bell.