AZUL - Why Airline Shares Are Flying High Today
Over the weekend, a top U.S. health official delivered some encouraging news about the pandemic. That's providing a lift to airline stocks, one of the sectors most impacted by COVID-19. American Airlines Group (NASDAQ: AAL) is leading the way higher on Monday, up more than 10% as of 1 p.m. ET, with shares of Delta Air Lines (NYSE: DAL) , United Airlines Holdings (NASDAQ: UAL) , Southwest Airlines (NYSE: LUV) , JetBlue Airways (NASDAQ: JBLU) , Spirit Airlines (NYSE: SAVE) , and Brazil's Azul (NYSE: AZUL) each up 5% or more.
Airline stocks lost more than half of their value in the early days of the pandemic as the industry quickly switched into crisis mode. The companies listed above were able to survive, but took on billions in added debt to make up for lost revenue and have balance sheets that are battered and bruised and in poor shape to deal with any additional crisis.
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Why Airline Shares Are Flying High Today