Why Airline Shares Are Higher Today
On paper, it looks like it should be a terrible day for airline stocks. The U.S. reported more than 100,000 new COVID-19 cases on Wednesday, and deaths are also on the rise. Politicians are talking about lockdowns, and whatever hope there was of a second stimulus package seems likely to be caught up in post-election gridlock.
Yet despite all the bad news, airline shares gained altitude on Thursday. American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) all were up about 5% heading into the close as investors tried to look past the near-term turbulence.
Airlines have been among the sectors hit hardest by the pandemic, with virus fears and lockdowns causing a steep drop-off in travel volumes. The industry has raised billions to try to ride out the crisis, but there will be no recovery until the pandemic is under control and life begins to normalize.
Source Fool.com
