The airlines on Monday are making the rounds with investors talking up the industry’s improving financial position, and it is having the desired effect. Airline stocks are on the move higher on Monday, with American Airlines Group (NASDAQ: AAL) up as much as 11%, United Airlines Holdings (NASDAQ: UAL) up nearly 10%, and Delta Air Lines (NYSE: DAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) each up 5%.
Airlines endured a miserable 2020, with the pandemic weighing on travel demand and sending the companies to deep losses. They are still losing money, but airline execs taking the virtual stage for the J.P. Morgan Industrials Conference on Monday said that should change in the weeks and months to come.
Delta CEO Ed Bastian said that while the airline will post a large loss in the current quarter, bookings have picked up in recent weeks and he expects the airline to be “at or pretty darn close to breakeven” in March in terms of cash burn.