Why Airline Shares Are Up Today
Shares of airlines on Thursday traded up for the third straight day as investors continue to applaud the $2 trillion economic relief package making its way through Congress. Airlines are set to receive about $50 billion in aid as part of the package, which hopefully will be enough to get them through the COVID-19 coronavirus pandemic-related travel slowdown.
Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) all opened up more than 10% on Thursday, and shares of United Airlines Holdings (NASDAQ: UAL) traded up 9%. All have retreated somewhat as the day went on but remain in the green as of 2:45 pm.
The airlines were among the hardest hit sectors due to the pandemic, with travel demand evaporating overnight as the virus spread globally. Carriers have responded by cutting flights, freezing hiring, and grounding planes, but no amount of cutting is likely to be enough when revenue is supposed to drop by 80% or more.
Source Fool.com
