Why Shares of Alaska Air Group Are Soaring Today
Shares of Alaska Air Group (NYSE: ALK) climbed nearly 10% on Tuesday afternoon as investors took a second look at airline stocks, which have been beaten down by fears of a travel slump related to COVID-19 outbreaks. The impact on airlines is real, but with shares of Alaska down more than 36% year to date heading into Tuesday trading, the sell-off is beginning to look overdone.
Airlines have been among the sectors hit the hardest during the coronavirus sell-off, as investors react to travel demand all but evaporating in areas where the outbreak is most prevalent. The sell-off has increased in recent days as concerns grow that health fears will lead to sustained weakness through the key spring break and summer vacation travel seasons.
Image source: Alaska Air.
Source Fool.com
