Airline stocks are set up for a broad rally, led by American Airlines Group Inc. (AAL) shares, after Deutsche Bank analyst Michael Linenberg said it was time to buy into the sector as COVID-19 cases, hospitalizations and vaccination rates are all trending in the right direction. He upgraded nine U.S.-based airlines to buy from hold. "As our upgrade is a sector-wide call, we are of the view that all of our names could see material upside from current levels," Linenberg wrote in a note to clients. Among the biggest premarket gainers, shares of American Airlines shot up 5.8%, JetBlue Airways Corp. (JBLU) rallied 2.1%, Delta Air Lines Inc. (DAL) rose 1.6%, Southwest Airlines Co. (LU) hiked up 1.3% and Alaska Air Group Inc. (ALK) tacked on 1.2%. Meanwhile, United Airlines Holdings Inc. (UAL) edged up 0.3%, after an engine on Flight 328 blew apart midflight ( ) on Saturday. The U.S. Global Jets ETF (JETS) climbed 1.4% ahead of the open, putting it on track to open at a one-year high, while futures for the S&P 500 fell 0.8%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 22, 2021 07:44 ET (12:44 GMT)
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