Why Airline Shares Are Up Today
Shares of major airlines were enjoying a rare up day on Thursday, fueled by a broader market rally and some commentary on when the COVID-19-induced demand slump might recede. There's surely money to be made on the stocks if the airlines can fly through this crisis without heading into bankruptcy, but investors in recent weeks have been loath to assume that's a given.
Shares of Delta Air Lines (NYSE: DAL) peaked at up 7.1% today, while shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and Southwest Airlines (NYSE: LUV) all traded up more than 5%. The gains were fading heading into the close, a sign of how much uncertainty there is around airline stocks right now.
Airlines have been hit hard by the pandemic, which has caused demand for travel to evaporate and has caused companies that just a few months ago were looking to expand to instead retrench and cut costs. The industry lost billions in the first quarter, and the second-quarter figures to be even worse as carriers cut schedules by 90% or more into the summer.
Source Fool.com
