US Airways Group Inc (LCC.N) delivered a smaller loss than Wall Street estimates and noted "overall strength in passenger demand."

Delta Air Lines Inc (DAL.N), whose loss after items was in line with analysts' consensus estimates, said it expects to make profits in the current quarter and full year despite higher fuel costs. The carrier said unit revenue, an important financial measure, would likely rise 11 percent during April.

"Demand is strong, which is going to mean we'll have ticket price increases," said Ray Neidl, an aerospace industry analyst with Maxim Group.

"Fuel is somewhat stable right now and both airlines are doing a very good job in maintaining or even cutting their non-fuel (costs). It's going to be a very good second and third quarter for the industry, I believe."

US Airways shares were up 3.2 percent at $9.61 after seesawing earlier, while Delta edged up 0.2 percent to $10.50. The Arca Airline index .XAL was up 1 percent.

U.S. carriers have merged, trimmed unprofitable routes, raised ticket prices and added charges for food and luggage to return to financial stability after the 2008-09 downturn.

The price of U.S. crude was around $104 a barrel on Wednesday after peaking at $110 in March.

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Delta and US Airways recorded special items in the first quarter, including gains tied to their exchange of takeoff and landing slots last year at New York's LaGuardia and Washington's Reagan National airports. Delta also had a gain from fuel hedges that settle in future periods. Excluding these items, the carriers had operating losses.

US Airways, based in Tempe, Arizona, reported net income of $48 million, or 28 cents a share, for the first quarter, compared with a loss of $114 million, or 71 cents a share, a year earlier. Excluding its gain, US Airways had a loss of 13 cents a share, smaller than the loss of 25 cents expected by analysts on average, according to Thomson Reuters I/B/E/S.

At Atlanta-based Delta, net income was $124 million, or 15 cents a share, compared with a year-earlier loss of $318 million, or 38 cents a share. Excluding items, the loss was 5 cents a share.

Revenue at US Airways rose 10 percent to $3.3 billion and was up 9 percent at Delta to $8.4 billion. Aircraft fuel and related taxes rose 17 percent at US Airways and 3 percent at Delta.

"Customer demand remains solid with strong gains in corporate revenue," Delta said.

The results at Delta and US Airways follow operating losses reported last week by Southwest Airlines Co (LUV.N) and American Airlines parent AMR Corp (AAMRQ.PK), which had heavy expenses tied to its reorganization as it operates under Chapter 11 bankruptcy protection.

US Airways disclosed last week that it garnered support from three unions at bankrupt American for a potential merger between the two companies .

Since American has made clear it prefers to emerge from Chapter 11 as a stand-alone carrier, US Airways has been working with AMR employees and is now focused on courting the support of unsecured creditors, US Airways Chief Executive Doug Parker said Wednesday during the company's earnings conference call.

"We are eager to demonstrate to the creditors of AMR that our plan would result in higher returns than the AMR stand-alone strategy would, and we are highly confident that the value created by our two companies is very large relative to the value of a stand-alone AMR," he said.

Should a US Airways-American Air merger materialize, it would create a carrier that rivals United Continental Holdings Inc (UAL.N) and Delta in size and scope.

(Reporting by Karen Jacobs in Atlanta; editing by Andre Grenon and Philip Barbara)

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