Why Airline Stocks Are Climbing Today
Airline shares took flight Monday after another weekend of positive data points suggesting travel demand is slowly returning and a positive write-up of the industry in Barron's.
Spirit Airlines (NYSE: SAVE), one of the focuses of the Barron's article, gained 10% as of 11 a.m., leading the way among airlines. But the whole sector had momentum on Monday. Shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), JetBlue Airways (NASDAQ: JBLU), and Allegiant Travel (NASDAQ: ALGT) all traded up about 5%.
The airlines were hit hard by the COVID-19 pandemic, which has cut global travel demand to near zero. Airline stocks lost half their value or more in March and early April but have since stabilized thanks to government assistance as part of the CARES Act stimulus plan and private fundraising efforts.
Source Fool.com
