Why Airline Stocks Are Higher Today
Airlines are in the green on Thursday, a down day for broader markets, as investors are slowly warming to the sector as earnings season continues. The companies are posting losses in the second quarter, as expected, but all appear to have clear plans to ride out the coronavirus pandemic without running out of cash.
Shares of United Airlines Holdings (NASDAQ: UAL) traded up as much as 10.9% mid-day on Thursday, while shares of American Airlines Group (NASDAQ: AAL) peaked at up 9.2%, Spirit Airlines (NYSE: SAVE) gained 7%, and Delta Air Lines (NYSE: DAL) traded up 5.5%. The sector gave back some of those gains as the afternoon went on, but all four airlines were up as of 3:30 p.m. EST, even as the S&P 500 was down more than 1.4%.
Airlines have been hit hard by the pandemic, with travel demand all but evaporating in April and only recovering slightly in the months since. Industry second quarter revenue is down 80% or more year over year, and with new cases spiking in many parts of the country, airlines are planning on shrinking schedules further as summer ends.
Source Fool.com
