American Airlines Stock Goes up After the U.S. Permits to Fly to Havana.
American Airlines Stock (NASDAQ:AAL)
American Airlines stock gained after the U.S. granted permission to fly to Havana.
According to a statement released by the Department of Transportation on Monday, the Biden administration plans to increase the number of flights from the United States to Havana. Specifically, American Airlines (NASDAQ:AAL) and JetBlue will each add one weekly departure from the city of Fort Lauderdale, Florida.
This is in addition to the standard five to six daily flights offered by American Airlines (NASDAQ:AAL) and the three-weekday flights offered by JetBlue that depart from Florida airports and head to Havana.
According to the USDOT, the flights need to get underway by the middle of December. In June, the Department of Transportation relaxed several limitations that had been placed on flights to Cuba. One of these was the prohibition that had been placed on flights by U.S. airlines to smaller airports located outside of Havana.
Secretary of State Antony Blinken defended the move at the time, saying it was in favor of the Cuban people and in the foreign policy objectives of the United States.
The previous government, which was led by President Donald Trump, made it illegal for passenger airlines to fly to Cuban airports that were less busy.
American Airlines (NASDAQ:AAL) was granted permission to restore service to some of Cubas smaller airports in July. American Airlines submitted an application to the Cuban government requesting permission to fly from Miami to Santa Clara, Holguin, Matanzas/Varadero, and Santiago de Cuba.
An announcement made by the airline earlier this year stated that the flights would boost service and access between the United States and these non-Havana sites, after more than two years during which such service was halted.
The United States placed a limit on the number of charter flights to Cuba during the Trump administration, setting it at 3,600 a year. Subsequently, it stopped allowing private charter flights to travel to the country. In addition, charter flights to any airport in Cuba other than Havana were prohibited. As a result, American Airlines stock gained as soon as the news hit the market.
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