Why Airline Shares Are Up Today
Airline shares soared higher on Monday after a prominent Wall Street analyst came out with a bullish report on the sector. It's a "risk on" day on Wall Street, with broader markets brushing off spikes in COVID-19 cases and focusing on economic data. Airline shares are going along for the ride.
Shares of Southwest Airlines (NYSE: LUV) are leading the sector higher, up 10% as of 2:30 p.m. EST, while shares of American Airlines Group (NASDAQ: AAL) and Spirit Airlines (NYSE: SAVE) are both up 8% apiece. United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), Alaska Air Group (NYSE: ALK), and Hawaiian Holdings (NASDAQ: HA) are all up more than 6%.
Airlines have been hit hard by the pandemic. The industry expecting second-quarter revenue to fall 90% year over year. We've seen the early signs of a recovery in travel demand, but the industry is still vulnerable as new cases soar in Florida, Texas, California, and other key tourist destinations.
Source Fool.com
