American Airlines, filed for bankruptcy today, causing the company's stock to go into free fall and prompting speculation about a possible merger with US Airways.
While an IATA press release showed lower profit forecasts in Europe for 2012, projections for North American carriers helped push several airline stocks higher.
Initial jobless claims fell to their lowest point in three years last week, prompting a modest rally for stocks on Wall Street, indicating a sign of strength for the economy.
News that United Continental and Alaska Air will be using biofuels in domestic flights helped push up stock prices for Syntroleum during the day and Solazyme after hours.
Airline stocks have been struggling with higher jet fuel prices for most of 2011 and measures to help minimize the impact of the costs led to higher revenues but net income continues to decline.