Sector Snap: Airlines up as oil falls again

NEW YORK (AP) — Airlines were in the green again Wednesday, as oil prices continued to slip on government data showing that the nation's crude supplies are up — a signal that demand hasn't come back.

Benchmark crude for October delivery fell 70 cents to $71.35 a barrel in trading on the New York Mercantile Exchange.

The Energy Department reported Wednesday that U.S. crude stockpiles rose by 200,000 barrels for the week ended Aug. 21. Last week, the same report showed a large and unexpected draw on oil, which sent prices soaring.

The price for a barrel of oil briefly touched $75 on Tuesday before falling 3 percent for the day — a common occurrence in the volatile energy markets of late. In London, Brent crude fell 22 cents to $71.60.

In airline news, bag fees are going up — again.

US Airways said Wednesday it is bumping up its fees for first and second checked bags by $5 each, and is tacking on an additional fee for a second checked bag on trans-Atlantic flights. The Tempe, Ariz.-based airline will charge $20 for the first checked bag and $30 for the second, when bags are checked online.

The Amex Airline Index rose 1.7 percent to 25.08 in afternoon trading.

Among airline stocks, US Airways Group Inc. led the pack, jumping 28 cents, or 8.1percent, to $3.73. Most other carriers rose less than 2 percent.

Bucking the trend was Southwest Airlines Co., which fell 6 cents to $8.62. Federal Aviation Administration say a maintenance company hired by Southwest used unapproved parts for repairs on some jets.