Why Airline Shares Are Soaring Today
Airline shares took off on Monday on positive developments in the global fight against COVID-19, including a report that President Donald Trump could green-light an experimental vaccine made by AstraZeneca by October. The airlines desperately need to put COVID-19 behind them if they have any hope of really getting airborne, and hopeful medical news caused investors to buy into the stocks.
Shares of United Airlines Holdings (NASDAQ: UAL) and American Airlines Group (NASDAQ: AAL) led the sector higher on Monday, each up more than 9% as of 12:45 p.m. EDT. Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) were each up more than 8%, while Southwest Airlines (NYSE: LUV), Alaska Air Group (NYSE: ALK), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) were all up 5% or more.
Airline stocks have been hit hard by the pandemic, which caused travel demand to crater back in March and April and has kept passengers from flying through the summer. Industry revenue was down more than 80% from last year in the second quarter, and with what little demand there was tied to summer vacations airlines are bracing for further reductions in the months to come.
Source Fool.com
