AAL’s post-earnings pop is lifting the airline sector today
Airline stocks are having a day today, even as Boeing (BA) 737 MAX drama spirals out of control. American Airlines Group Inc (NASDAQ:AAL), Delta Air Lines, Inc. (NYSE:DAL), and United Airlines Holdings Inc (NASDAQ:UAL) are all varying degrees higher today, shaking off the 737 nonsense and enjoying a post-earnings halo lift from one of their own.
The sector tailwinds are all because of AAL, last seen up 10.5% to trade at $15.39. The company’s fourth-quarter earnings surpassed estimates, while the 2024 profit forecast also topped forecasts, thanks to strong demand for international travel. AAL is on track for its biggest single-day gain in over a year.
DAL is 3.6% higher to trade at $39.59, helping the stock reclaim its year-over-year breakeven level. Just yesterday, a Delta-owned Boeing aircraft lost a nose tire while taxiing in Atlanta.
UAL was last seen up 3.5% to trade at $42.26, now above its year-to-date breakeven level. In an effort to appease red-hot travel demand, the airliner announced over 100 added flights to cities in the U.S. and Canada this summer.
While all three stocks don’t boast eye-popping gains, consider the table below that shows just how much AAL, DAL, and UAL have bounced off their late-October annual lows.
These stocks also all have respective Schaeffer’s Volatility Scorecard (SVS) readings of 97, 98, and 87. This means AAL, DAL, and UAL all have tended to exceed options traders’ volatility expectations in the past year — a boon for would-be premium buyers.