Airlines, Boeing surge on upbeat vaccine news, American jumps more than 25%
- U.S. airlines jumped by double-digit percentages after news of positive results in preventing Covid-19 in a closely-watched vaccine trial.
- Airlines are particularly sensitive to developments in preventing or treating Covid-19.
Shares of U.S. airlines surged on Monday after U.S. pharmaceutical giant Pfizer and German biotech firm BioNTech reported positive results from their Covid-19 vaccine trial.
American Airlines shares were up more than 25% in premarket trading, Delta Air Lines was up 18% and United Airlines gained more than 20%. Shares of aircraft maker Boeing were up more than 14%.
Airline stocks are particularly sensitive to coronavirus news as the pandemic has prevented many customers from flying, pressuring revenue and driving up losses to more than $20 billion in the last two quarters alone.
Demand has climbed from more than five-decade lows hit in April, but is still far below normal levels. The Transportation Security Administration screened an average of 616,868 people a day since March 1 through Sunday, down from close to 2.4 million a day during the same period last year.
United's CEO Scott Kirby has said he expects revenue to plateau at half of 2019 levels without a widely available vaccine.
Pfizer and BioNTech said Monday that their coronavirus vaccine was more than 90% effective in preventing Covid-19 among those without evidence of prior infection.
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