Why Airline Shares Are Flying Higher Today
Airline shares got a lift on Wednesday thanks to positive updates from both Southwest Airlines (NYSE: LUV) and Delta Air Lines (NYSE: DAL) suggesting business is holding up better than expected, and capital markets are still open for airlines looking to raise cash.
Shares of Southwest, United Airlines Holdings (NASDAQ: UAL), and American Airlines Group (NASDAQ: AAL) all traded up more than 5.5% as of 2:45 EDT, and Delta was up 4.4%, on a strong day for the entire airline sector.
Airlines have been devastated by the COVID-19 pandemic, which has caused revenue to plunge and pushed the industry into the red. It will likely be late 2021 at the earliest before we see a recovery, and the question for investors for now is whether the companies will be able to survive until a rebound happens.
Source Fool.com
