Airline stocks only show modest gains after the government shutdown breakthrough

Airline stocks only showed very modest gains after a group of moderate Senate Democrats agreed to back a proposal that would reopen the government and fund several departments—including Agriculture, Veterans Affairs, and Congress—through the end of the fiscal year, while extending funding for other agencies through January 30. The plan would also provide back pay for furloughed workers and resume suspended federal payments to states and localities.

The rally is somewhat muted because the House would still have to approve any Senate deal, and it is unclear if that process will play out before the crucial Thanksgiving holiday break that typically includes some of the highest air travel traffic days of the year.

Airline stocks: American Airlines (AAL) +1.0%, Delta Air Lines (DAL) +1.2%, Southwest Airlines (LUV) +1.8%, United Airlines (UAL) +0.6%, JetBlue Airways (JBLU) +1.0%, Alaska Air Group (ALK) +1.3%, Allegiant Travel (ALGT) +0.9%, Spirit Airlines (OTC:SAVEQ), Mesa Airlines (MESA) +1.1%, SkyWest (SKYW) +0.2%, and Frontier Group (ULCC) +0.7%.