UPDATE 1-Golf-American Kelly ends title drought in New Orleans

(Adds detail, Howell quotes)

* Kelly claims first PGA Tour victory since 2002

* Howell falters with bogeys on 15 and 17

HOUSTON, April 26 (Reuters) - Jerry Kelly took advantage of a stumbling finish by fellow American Charles Howell III to clinch his third PGA Tour victory by one shot at the New Orleans Classic in Avondale, Louisiana on Sunday.

Three strokes clear overnight, Kelly recovered from a nervy start in blustery conditions to card a one-under-par 71 at the TPC Louisiana, ending a title drought of seven years on the U.S. circuit.

The 42-year-old covered the last eight holes in two under for a 14-under total of 274, finishing ahead of Howell (68), South African Rory Sabbatini (67) and South Korean Charlie Wi (68).

Howell, bidding for a third PGA Tour title, squandered a two-shot lead after 11 holes with bogeys on 15 and 17.

"I don't know what to say," Howell, 29, said in a greenside interview. "I got myself to 15 (under), I got into a position to do it.

"I hit a lot of good shots today and I played a lot of good holes. I just wished I could have finished it a little better."