Why Airline Shares Are Flying High Today

Airline shares got a lift Tuesday along with the broader markets on encouraging news about a treatment for COVID-19 and a renewed effort by the Federal Reserve to stimulate the economy. Airlines need a recovery, and with it a rebound in travel demand, to weather the pandemic crisis, and the headlines on Tuesday were positive steps in that direction.

Shares of Spirit Airlines (NYSE: SAVE) opened up 13.8% on Tuesday, while shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) each were up 10% and shares of Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all up more than 6%.

The stocks gave back some of those gains after the open, but the entire sector was still beating the market as of 11 a.m. EDT Tuesday.

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Source Fool.com