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U.S. airline stocks rose on Monday as the country tries to reopen the economy. The rise is a good sign of improvement and general market enthusiasm.
U.S. airline stocks have started to rise, in response to a Monday announcement on plans to reopen the economy. The financial markets and the entire economy suffered significant losses when the coronavirus struck and crippled normal functions.
In addition to the announcement, biotech company Moderna Inc (NASDAQ: MRNA) announced positive results from its clinical trials. The company, just like more than a few others, has been working on a COVID-19 vaccine. Although the trial only involved 45 persons, the company, as well as investors, are pleased with the results. This development, along with the announcement to reopen the economy, is encouraging factors for the financial market.
Now, several stocks, including Delta Air Lines Inc (NYSE: DAL), American Airlines Group Inc (NASDAQ: AAL), Hilton Hotels Corporation (NYSE: HLT), and Marriott International Inc (NASDAQ: MAR), are all up.
A vaccine for COVID-19 was announced to have shown positive results on Monday, as a trial was carried out on 45 persons. This is good news to investors and everyone in general, as everybody just wants to go back to work. This has been met with optimism. On Monday, several big wins were recorded in the stock market.
U.S Airline Stocks
Delta Airlines stock (DAL), climbed 10.7% yesterday and closed at $21.86. DAL is currently trading at $21.75 and has only traded in the green, in the last 5 days. This year alone, DAL has lost over 63%, with nearly 61% in the last 12 months.
American Airlines stock (AAL) rose by 6.9% yesterday and closed at $9.87. It has currently added 0.20% and is trading in the green, at $9.89. On average, AAL has been trading in red over the last year. It lost more than 65% in 2020 gains and over 10% in the last 30 days.
Challenges for Airlines
Even though U.S. airline stocks are now posting positive gains, these companies still have to battle some uncertainty. As some normalcy begins to return, airlines might have a hard time convincing travelers to resume their usual schedules. In addition to this, many airlines laid off a large number of staff. Since there is no proper treatment or vaccine for COVID-19, it might be a while before airlines regain all losses.
Is There Hope for Hotels?
Companies in the hospitality business are also some of the hardest-hit by the coronavirus. However, some of them are also posting gains at the moment. Both Marriott International (MAR) and Hilton Hotels (HLT) rose 7.6% and 12.8%, respectively. Bank stocks, as well as several other companies, are also on the rise.
The rise is important, considering the fact that the companies shut down services since the outbreak.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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