Gogo, Global Eagle Entertainment Shares Rise After American Airlines Adds Summer Capacity
June 04 2020 - 2:51PM
Dow Jones News
By Dave Sebastian
Shares of airline-exposed companies rose Thursday as American
Airlines Group Inc. prepares to ramp up domestic flying for the
summer.
The airline said it sees travel demand starting to pick up a few
months into the coronavirus pandemic.
Shares of in-flight internet provider Gogo Inc. and in-flight
entertainment company Global Eagle Entertainment Inc. rose 16% to
$3.05 and 16% to $4.40, respectively.
American, whose shares were up 29% to $15.30, said it plans to
fly more than 55% of its July 2019 domestic capacity in the same
month this year. Overall, the systemwide capacity for July would
amount to 40% of the year-ago period's.
The move comes as states have begun reopening their economies in
phases. However, businesses are also facing an additional challenge
with the recent outbreak of protests in the U.S. against police
violence.
Shares of large competitors Delta Air Lines Inc., United
Airlines Holdings Inc. and Southwest Airlines Co. also rose.
JetBlue Airways Corp. shares rose 14%, Spirit Airlines Inc. was up
20% and Mesa Air Group Inc. up 16%.
Shares of Sabre Corp., a travel-technology company that handles
air bookings, rose 3.7%.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
June 04, 2020 14:36 ET (18:36 GMT)
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