United jumps most since July on fare power, pacing airline rally

United Continental is sending Wall Street a clear message with its latest earnings report: Stop fretting, our domestic growth plan is working. Investors responded by pushing up the airline by the most in three months. Booming travel demand is enabling United to raise fares even as it beefs up flights at major hubs. That’s validating its aggressive expansion plan while allaying worries that the growth push would erode ticket prices. United also is making progress in enhancing premium offerings and wooing budget travelers with cheaper “basic economy” fares that offer fewer amenities. The airline’s string of positive results “appears supportive of the elevated growth strategy in contrast to our fears,” Raymond James Financial analyst Savanthi Syth wrote Wednesday in a note to clients. United climbed 6% to $88.54 at 2:18 p.m. in New York after surging as much as 7.1% for the most intraday since July 18. The advance, the biggest on the S&P 500 Index, led a rally of airline stocks. United’s 24% gain this year through Tuesday was the best performance on a Standard & Poor’s index of nine US carriers. “We’re struggling to find things to complain about, despite our most cantankerous efforts,” said Jamie Baker, an analyst at JPMorgan Chase & Co., echoing a similar tone to what he said after the Q2 report in July.<br/>