Sector Snap: Airline stocks slip

Airline stocks slipped in mixed trading on Monday, but shares of Midwest Air Group Inc. surged to a 52-week high after rival AirTran Holdings Inc. sweetened its hostile takeover bid.

The Amex Airline Index fell nearly two-thirds of 1 percent, with nine of its 11 component stocks declining. Hurting shares was a barrel of oil gaining 27 cents to $66.14 on the New York Mercantile Exchange.

Jet fuel is among an airline's top costs, and their stocks tend to trade against crude price swings.

Among the bigger decliners in the index, American Airlines' parent, AMR Corp. slipped 55 cents to $29.89, and Continental Airlines Inc. fell 66 cents to $35.73, both on the New York stock Exchange.

Midwest Air, meanwhile, surged 90 cents, or 6.7 percent, to $14.41 on the American Stock Exchange. It climbed as high as $14.75 earlier in the session, topping its prior 52-week high of $14.15 set in January.

AirTran boosted its bid for Midwest Air by almost 13 percent to $389 million in cash and Stock. Midwest Air has consistently rebuffed AirTran's offers, saying it prefers to stand alone.

AirTran shares rose a nickel to $10.30 on the NYSE.
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