ROSEMONT, IL – SEPTEMBER 3: An American Airlines jet is seen in the air preparing to land September 3, 2004 at Chicago’s O’Hare International Airport in Rosemont, Illinois. American Airlines announced December 10, 2004 that they will be raising domestic airfares $ 10 for round-trip and $ 5 for one-way trips due to jet fuel expense. (Photo by Tim Boyle/Getty Images)
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Shares of airline companies blasted off Monday, after upbeat news on a potential COVID-19 vaccine candidate from Pfizer Inc. and BioNTech SE gave investors hope for a quick recovery in business and leisure travel.
The U.S. Global Jets exchange-traded fund JETS,
The air carrier rally comes amid a big surge in the broader stock market, with the Dow Jones Industrial Average DJIA,
American Airlines Group Inc.’s AAL,
Among other more-active air carrier shares, United Airlines Holdings Inc. UAL,
Spirit Airlines Inc.’s stock SAVE,
Elsewhere, shares of Southwest Airlines Co. LUV,
Earlier, Pfizer PFE,
Airlines had been among the hardest hit sectors by the COVID-19 pandemic. Although travel has steadily increased since April, a recent surge in new cases has led to new lockdowns in Europe and raised fears of similar moves in the U.S.
“A coronavirus vaccine is the positive catalyst we were looking for to really kick start an aerospace recovery, and while some of the moves today might fade with profit taking, we think this news is fundamentally a step in the right direction,” analyst Robert Stallard at Vertical Research Partners wrote in a note to clients.
The Jets ETF has gained 24.0% over the past three months, but was still down 34.5% year to date. In comparison, the S&P 500 has tacked on 8.0% the past three months and has advanced 12.1% this year.
