A United Airlines aircraft will take off over American Airlines aircraft on the tarmac at Los Angeles International Airport (LAX) on October 1, 2020.
Mario Tama | Getty Images
US airline stocks rose to a multi-month high on Monday after the US pharmaceutical giant Pfizer and German biotech company BioNTech reported positive results from her Covid-19 vaccine study, which raised hopes that she could revive demand for air travel
United Airlines added more than 19% to end the day at $ 41.32 while Delta Airlines rose 17% to $ 36.77 and shares of Hawaiian Holdings, Parent company of Hawaiian Airlines, rose 50% to $ 20.89, each closing at its highest price since June. American Airlines rose 17% to $ 13.20, a two-month high. Shares in the aircraft manufacturer Boeing rose 13.7% to $ 179.36, a three-month closing high. The profits far outperformed the broader market S&P 500 End of the day by 1.2%.
Airline stocks are particularly sensitive to coronavirus news as the pandemic has prevented many customers from flying, squeezing revenue and driving losses to over $ 20 billion in the last two quarters alone.
Demand has risen from more than five decades of lows in April but is still well below normal. The Transportation Security Administration examined an average of 616,868 people per day since March 1 through Sunday, compared with nearly 2.4 million per day for the same period last year.
Scott Kirby, United CEO, said he expected sales to plateau at 2019 levels without a generally available vaccine.
Pfizer and BioNTech said Monday that their coronavirus vaccine was more than 90% effective in preventing Covid-19 among those with no evidence of previous infection.