Shares of airline companies blasted off Monday, after upbeat news on a potential COVID-19 vaccine candidate from Pfizer Inc. and BioNTech SE gave investors hope for a quick recovery in business and leisure travel.
The U.S. Global Jets exchange-traded fund JETS, -1.38% shot up 18.9% in premarket trading, putting it on track to open at the highest price seen during regular-session hours in five months.
The air carrier rally comes amid a big surge in the broader stock market, with futures YM00, +5.43% for the Dow Jones Industrial Average DJIA, -0.23% soaring nearly 1,500 points, or 5.3%. See Market Snapshot.
American Airlines Group Inc.’s AAL, -1.20% stock paced the sectors gainers, rocketing 23.8% toward a three-month high on volume of about 11 million shares.
Among other more-active air carrier shares, United Airlines Holdings Inc. UAL, -1.89% ran up 17.1%, Delta Air Lines Inc. DAL, -1.75% powered up 18.1%, Spirit Airlines Inc. SAVE, -1.44% surged 21.1%, Southwest Airlines Co. LUV, -2.53% hiked up 15.7% and JetBlue Airways Corp. JBLU, -1.51% rallied 18.0%.
Earlier, Pfizer PFE, +0.02% and BioNTech BNTX, said their COVID-19 vaccine candidate BNT162b2 achieved “success” in the first interim analysis from a Phase 3 study, as it was found 90% effective in preventing COVID-19 in trial participants without previous evidence of SARS-CoV-2 infection.
Airlines had been among the hardest hit sectors by the COVID-19 pandemic. Although travel has steadily increased since April, a recent surge in new cases has led to new lockdowns in Europe and raised fears of similar moves in the U.S.
The Jets ETF has gained 6.6% over the past three months through Friday, but was still down 43.7% year to date. In comparison, the S&P 500 index SPX, -0.02% has tacked on 4.7% the past three months and has advanced 8.6% this year.
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