FINSUM + Magnifi: Leisure Bookings have Airline Stocks Flying
(March 2021)
Many Airlines saw increases in stock prices on Monday as increases in bookings for spring and summer leisure trips saw an uptick. American Airlines, Arca Airlines, JetBlue, and Southwest all saw their stock prices jump ahead on the news, with the largest rising 7%. While the airlines don’t secure the funding until after the flight has taken off, the projections are looking better across the industry. The upticks in revenue projections are sizable but they were in a pretty grim spot previously as Covid continues to challenge the airline industry. Finally, the gains also reflect an increase in funding allocation from the new stimulus package. Airlines can expect to receive $14 billion in grants and loans to help facilitate costs, but stipulations have been put on future dividend payments and stock buybacks.
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