Why Shares of Airlines Are Soaring Today
Airline stocks were gaining altitude on Wednesday after the White House and Congress overnight announced a deal on a $2 trillion stimulus package. The deal includes $50 billion for U.S. passenger and cargo airlines, which should help the companies weather the severe travel slowdown caused by the COVID-19 coronavirus pandemic.
Shares of Hawaiian Holdings (NASDAQ: HA) and Spirit Airlines (NYSE: SAVE) were each up more than 30% as of 1 p.m. EDT today, while shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) were all up more than 15%, and both Alaska Air Group (NYSE: ALK) and Southwest Airlines (NYSE: LUV) were up more than 8%.
Few industries have been hit harder by the pandemic than the airlines, with travel demand disappearing overnight and ticket sales expected to remain slow through the summer at least. Absent assistance, the companies are facing tough decisions as revenue has plummeted. Delta, for example, expects 2020 second-quarter revenue to be down 80% year over year, and it is currently burning through $350 million per week.
Source Fool.com
