- Shares of airline companies rose on Monday amid surging optimism around the ongoing economic recovery following the Senate’s recent approval of the stimulus plan.
- United Airlines, Southwest, American Airlines, and Delta shares all climbed.
- Airlines were among those that suffered most when large swaths of the global economy shut down at the start of the pandemic.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell
Shares of airline companies rose Monday as the Senate’s recent approval of the Biden administration’s $US1.9 ($2) trillion simulus bill led to a surge in economic optimism.
Here are the intraday highs for four major airline stocks:
- American Airlines: +6.1%, to $US21.71 ($28)
- United Airlines: +7.3%, to $US54.20 ($71)
- Delta Air Lines: +4.4%, to $US48.22 ($63)
- Southwest Airlines: +6.3%, to $US60.48 ($79)
The Senate on Sunday approved an economic aid package, set to be among the largest in American history. It now heads back to the House for final approval.
Many analysts say an increase in personal income for many Americans will stimulate the economy, unleashing pent-up desire to travel, consume, and spend. On top of this is a ramped-up vaccine rollout by the United States. President Biden has announced that there would be enough vaccines to innoculate Americans by the end of May this year.
Airline companies were among the industries that suffered the most when large swaths of the global economy shut down at the start of the pandemic, halting most of domestic and international travel. They are frequently one of the biggest beneficiaries of the so-called reopening trade.
Business Insider Emails & Alerts
Site highlights each day to your inbox.