Alaska Air Stock Is Soaring as Cash Burn Slows

Airline stocks took off on Wednesday, boosted by improving sentiment about air travel trends. In recent days, the TSA has been screening 12% to 14% of the number of passengers that typically would pass through its checkpoints at this time of year -- a big improvement from mid-April, when the TSA's reported throughput was just 4% of prior-year levels. Still, passenger traffic remains incredibly weak, and it's clear that there won't be a quick recovery in demand.

However, shareholders of one airline -- Alaska Air Group (NYSE: ALK) -- had greater cause for optimism. After the market closed on Tuesday, the Alaska Airlines parent reported that it dramatically reduced its cash burn in May. As a result, Alaska Air stock surged as much as 12% on Wednesday, before pulling back to end the day at $39.30, up nearly 9%.

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Source Fool.com