American Airlines stock surges toward 6-week high amid a broad airline-sector rally

american-airlines-stock-surges-toward-6-week-high-amid-a-broad-airline-sector-rally

Share of air carriers traded broadly higher Monday, amid growing optimism that the latest surge in COVID-19 cases to record daily levels won’t lead to widespread shutdowns given the omicron variant appears less severe and as more people are vaccinated. The U.S. Global Jets ETF JETS, +3.22% rallied 2.8% in afternoon trading, to outperform the S&P 500’s SPX, +0.64% 0.4% gain by a wide margin. Among the more active air carriers, shares of American Airlines Group Inc. AAL, +4.40% hiked up 4.3% toward a six-week high, United Airlines Holdings Inc. UAL, +3.91% rallied 3.7%, Delta Air Lines Inc. DAL, +3.10% climbed 2.9%, Southwest Airlines Co. LUV, +2.71% rose 2.1% and JetBlue Airways Corp. JBLU, +3.23% tacked on 2.6%. Analyst Conor Cunningham at MKM Partners said he expects airlines to slow capacity to stabilize operations amid the surge in cases, but that might not be a bad thing longer term. “Slowing capacity will highlight cost headwinds but should allow for better pricing power,” Cunningham wrote in a note to clients.

Source: Marketwatch

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