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Airlines on the rebound
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November 13, 2001: 10:41 a.m. ET
Investors bid up carriers as initial signs point to accident, not terrorism.
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NEW YORK (CNN/Money) - Investors picked up soldoff airline shares Tuesday as initial indications from Monday's crash of American Airlines flight 587 point to mechanical failure, rather than another terrorist act, as the cause.
Stocks in the airline sector dropped sharply following the crash in the borough of Queens, part of New York City.
Shares of United (UAL: up $0.60 to $10.93, Research, Estimates), Continental (CAL: up $0.60 to $16.60, Research, Estimates), Delta (DAL: up $0.90 to $24.17, Research, Estimates), Northwest (NWAC: up $0.52 to $13.25, Research, Estimates), Southwest (LUV: up $0.77 to $17.50, Research, Estimates), US Air (U: up $0.03 to $4.41, Research, Estimates), and AMR Corp. (AMR: up $0.39 to $16.88, Research, Estimates) -- the parent company of American Airlines, all moved higher Tuesday.
Aerospace companies Boeing (BA: up $0.44 to $33.50, Research, Estimates), United Technologies (UTX: up $1.83 to $57.13, Research, Estimates), General Dynamics (GD: down $0.30 to $82.02, Research, Estimates), and General Electric (GE: up $0.77 to $40.20, Research, Estimates) -- which built the engines now in question on the Airbus A300 -- also posted gains Tuesday.
There were 255 people on board American Flight 587 when it crashed near New York's John F. Kennedy Airport following its takeoff shortly after 9 a.m. ET Monday. While there was no immediate report on the cause of the crash, investigators said later in the day that an accident, rather than terrorism, was what they were suspecting.
The airline industry has been struggling with ongoing losses and a sharp drop in demand for air travel since the Sept. 11 terrorist attacks, in which four commercial jets were hijacked and crashed. Traffic figures show that the number of miles flown by paying passengers in October was off about 25 percent from year-earlier levels. 
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