A JetBlue Airways Corp. aircraft taxi alongside American Airlines Group Inc., Delta Air Lines Inc., and Alaska Airlines Inc. aircraft at Reagan National Airport (DCA) in Arlington, Virginia, USA, on Monday, April 6, 2020.
Andrew Harrer | Bloomberg | Getty Images
U.S. airline shares hit their highest prices since mid-June on Tuesday, but the rally, led by more customers returning to air travel and hoping for more government aid, cooled along with the broader market.
Delta Air Lines and United Airlines hit their highest prices since June 19. American Airlines topped its highest share price since June 22 and Southwest Airlines went to its highest since June 16. The wider S&P 500 was up for most of the session, but slipped into late afternoon trading.
Shares of airline got off to a strong start this week after federal data showed that more people were passing through U.S. airports. On Sunday alone, the Administration Security Transportation screened 831,789 people, the most since March 17.
“We continue to believe that there is coronavirus fatigue with some now seeking to return to normal life,” Cowane air analyst Helane Becker wrote on Tuesday. “We expect to see that TSA throughput trend higher this week is likely to be helped in part by students returning to their schools.”
Despite the upturn in travel, those numbers fell about 70% from a year ago, showing airlines still have a way to go before returning to normal demand levels for the entire summer season.
Political support has also grown to $ 25 billion in additional federal support for airline payment traffic, and it helps airlines’ share prices. The help largely depends on whether lawmakers and the White House reach a deal for a broader coronavirus incentive package.
Even with the recent rally, Airlines’ shares are down sharply this year. Delta is down 49% year-to-date, United has lost 58% and American has been down 52% since the end of last year. Southwest has been down 35% since December 31, less than the others because it has a U.S.-focused network, unlike its larger competitors who are suffering from the pandemic’s impact on international travel.
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