Why Shares of American and Other Airlines Are Climbing Higher Today

Shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) both traded up more than 5% on Tuesday afternoon, caught up in a broader surge higher as markets brush off concerns about the ongoing coronavirus outbreak in China.

The airlines were among the biggest losers as virus fears were growing, with both stocks down more than 12% for the month in late January, and are bouncing back now that the panic is at least temporarily subsiding.

The coronavirus outbreak has weighed heavy on investors for weeks now, with airline stocks under pressure due to concerns over revenue lost to canceled flights, and vacationers deciding to defer travel out of fear of getting sick.

Source Fool.com