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American Air Surges After Reddit Chatter on Squeezing Shorts

  • Gain follows comparison of airline to GameStop in online forum
  • Short-term outlook remains tough due to virus, analyst says
American Airlines Group Inc. aircraft in Arlington, Virginia, U.S.

American Airlines Group Inc. aircraft in Arlington, Virginia, U.S.

Photographer: Sarah Silbiger/Bloomberg
Updated on

American Airlines Group Inc. surged the most in seven months, extending a day-earlier gain as the carrier was swept up in a rally among heavily shorted stocks being targeted in Reddit’s Wall Street Bets forum.

The stock initially soared more than 30% and led the S&P 500 Index, even though American ventured a cautious outlook Thursday on when a recovery would materialize after an unprecedented drop in air travel last year because of the coronavirus pandemic.