(RTTNews) - Airline stocks have shown a notable move to the upside over the course of morning trading on Wednesday, contributing to the upward move by the broader markets. US Airways (LCC) is helping to lead the sector higher.

The strength in the airline sector is reflected by the 1.5 percent gain currently being shown by the NYSE Arca Airline Index. Despite the gain, the index remains stuck in a relatively narrow range.

US Airways is turning in one of the sector's best performances, with the airline currently up 9.4 percent. With the gain, shares of US Airways have risen to their best intraday level in a month.
The gain by US Airways comes as traders continue to react to the company's liquidity improvement program announced on Tuesday. The plan includes the deferral of 54 Airbus aircraft previously scheduled for delivery between 2010 and 2012.

US Airways said it would significantly reduce capital expenditures over the next three years, eliminate the need to access aircraft finance markets in 2010 and extend certain debt maturities. The airline said the transactions would improve year-end 2009 liquidity by about $150 million

Within the airline sector, American Airlines parent AMR Corp. (AMR) is also turning in a strong performance, advancing by 4.3 percent. United Airlines parent UAL Corp. (UAUA) and Continental Airlines (CAL) are also posting notable gains.

by RTT Staff Writer

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