Why Airline Stocks Are Flying High Today
Economic data is coming in strong, travelers are returning to the skies, and airlines are soaring. Shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) were all up 6% or more in Friday trading as investors cheered strong macro news and a fresh data point supporting the argument that there is pent up demand for air travel.
The airlines were hit hard by the pandemic, but have seen a steady return in travel this year as the COVID-19 vaccine became more widespread. But while the industry is filling its seats, it is doing so mostly thanks to low-margin domestic vacation travelers. Airlines rely on premium fares from business travelers and international trips to boost profitability, and so far those segments of the market have been sluggish.
Image source: Getty Images.
Source Fool.com
