American Airlines could receive $7 billion in PPP loans, that is why AAL stock is surging. – Idaho Reporter

AAL

American Airlines could receive $7 billion in PPP loans, that is why AAL stock is surging.

The reason behind a sudden American Airlines (AAL) stock surge this Wednesday might be an information that leaked through the DC backdoor.

According to certain Wall Street analyst Airlines are likely to receive another $25 billion in ppp loans (backed by 16 Republican senators) and with this deal American Airlines could receive anywhere from $5 to $7 billion in PPP loans which is at this time bigger than its market cap of $6 billion.

While people might argue that there is no good reason to favor airline employees over other workers hurt by the crisis there is a catch 22 why this will go through.

As one of the pilots from AirlinePilotForum said:”The idea would be to help maintain a robust staffing level so the airlines are immediately ready to ramp up once the economy recovers. If we furlough 100,000 airline employees the transportation system will be significantly smaller post vaccine, which could slow a countrywide recovery. Airlines are a significant aspect of the nation’s infrastructure.”

 

Some investors expect that the U.S. president will talk about this decision during his evening speech.

Let us see if this will become buy on rumor – sell on news happening or something else.

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