Why Airline Stocks Are Up Today
Stocks were largely under pressure on Monday morning, but it was a good start to the week for the so-called reopening trade. A wide range of travel and entertainment stocks traded up on encouraging news concerning the rollout of a COVID-19 vaccine and growing hope things will be returning to normal soon.
Airline stocks joined the rally, bolstered by a sectorwide upgrade by one Wall Street bank. American Airlines Group (NASDAQ: AAL) led the way higher, up 10% in late-morning trading, while shares of JetBlue Airways (NASDAQ: JBLU), Delta Air Lines (NYSE: DAL), United Airlines Holdings (NASDAQ: UAL), and Spirit Airlines (NYSE: SAVE) all traded up more than 5% apiece.
Airline stocks were hit hard in 2020 as the pandemic swept across the globe and wiped out demand for travel. The only way to make a bull case for the industry is a vaccine, and a steady flow of good news concerning the effectiveness of the vaccines and the progress being made distributing the shots has shares of airlines, as well as other recovery trade stocks, on the upswing.
Source Fool.com
