Why Airline Stocks Are Soaring Today
Stocks rocketed higher on Thursday following a government report that showed inflation eased last month, leading investors to hope the Federal Reserve might be able to slow rate hikes sooner rather than later. Airlines, a sector that historically has suffered during an economic slowdown, outperformed the broader averages.
Shares of JetBlue Airways (NASDAQ: JBLU) traded up as much as 9%, while shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV) and Alaska Air Group (NYSE: ALK) were all up 4% or more as well.
Airlines historically have been cyclical businesses, performing well when times are good, and poorly when the economy goes south. It's hard to afford plane tickets when consumers are struggling to pay the bills and businesses are seeing sales decline.
Source Fool.com
