** Shares of U.S. airlines rise after Consumer Price Index data shows rising airfare in July
** Data shows airline fares rose 4% in July vs 0.1% fall in the preceding month, marking the first year-over-year as well as sequential increase in six months
** Jetblue Airways JBLU.O, American Airlines AAL.O up nearly 10%; United Airlines UAL.O, Delta Air Lines DAL.N up about 9%; Southwest Airlines LUV.N up 4%
** Major airlines have been cutting capacity in a bid to drive up airfares and protect their margins
** Airlines have also been focusing on sales of premium seats amid an overall travel demand slump in the U.S.
** High margins and strong demand for premium seats are helping offset pullback in spending by price-sensitive customers
** As of last close, Dow Jones U.S. airlines index .DJUSAR fell 9.32% YTD