Airline Stocks Soar: What’s Behind the 81% Rally?
The airline industry has been on a tear, with American Airlines (AAL) leading the charge. Despite a brief hiccup on Tuesday when a technical issue forced the carrier to ground all its flights, the stock has advanced over 25% in 2024. But what’s driving this remarkable rally?
Technical Issues Won’t Ground the Rally
On Tuesday, American Airlines shares took a hit when a technical issue prompted the carrier to cancel all its flights. However, the stock quickly recovered, narrowing its loss to less than 1% during premarket action. The Federal Aviation Administration reported that American had requested a ground stop for all its flights, but FlightAware showed minimal delays and cancellations.
Airline Stocks Take Flight
The 18 stocks in the Transportation-Airline industry group have collectively gained around 47% in 2024, with Delta Air Lines (DAL) leading the pack with an impressive 81% rally. United Airlines (UAL) has also seen significant gains, trading 167% above its early August low. These stocks are poised for a rebound, with Delta shares trading moderately higher early Tuesday.
Market Forecasters Weigh In
Experts predict a broad-based rally in 2025, driven by a Trump-orchestrated economy. Irusha Peiris, portfolio manager at O’Neil Global Advisors, advises investors to let the market guide them. With airline stocks on the rise, it’s essential to stay informed and adapt to changing market conditions.
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