Shares of JetBlue Airways and Alaska Air Group led a rally in US airline stocks on Monday following a drop in the price of oil.

JetBlue shares were up about 4 percent, while shares of Alaska Air, and US Airways Group rose some 3 percent each during afternoon trading, driving the Amex Airlines index up 1.3 percent.

Analysts said airline stocks were reacting to the sharp drop in oil prices. US crude oil for June delivery dipped 3.1 percent to USD$69.55 a barrel on Monday.

JetBlue's shares were further boosted after an analyst upgraded its stock earlier on Monday.

JetBlue's shares were up 39 cents, or 4.1 percent, at USD$9.89 on Nasdaq. Alaska's shares were up $1.35, or 3.6 percent, at USD$38.85 and US Airways shares were up $1.44, or 3 percent, at USD$49.46, both at the New York Stock Exchange.