Why Airline Stocks Took Off This Morning
A pair of headlines gave airline stocks a lift on Tuesday morning, with shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all up between 5% and 7% soon after the open. The shares have lost altitude in the hours since, but as of the early afternoon remain in the green on a day when the broader markets are down.
It's a tough day for stocks in general, but airlines are flying higher than most. The so-called "legacy" carriers -- United, American, and Delta -- are also the nation's primary international airlines, and pre-pandemic China was an important growth market for international traffic.
China has been largely shut down since the onset of the pandemic, but the country is gradually moving to reopen its travel market. Overnight, China reduced the quarantine time for inbound passengers from two weeks to seven days. While still more restrictive than most markets, it is viewed as a sign that the all-important transpacific market could reopen to U.S. carriers in the months to come.
Source Fool.com
