Stock Market Today, May 22: American Airlines Rises on Strong Demand and Falling Oil Prices

American Airlines Group (NASDAQ:AAL), a popular network air carrier, closed at $13.85, up 1.91%, as investors responded to sector tailwinds from lower oil prices, new routes, and strong summer travel demand.

Trading volume reached 98.6 million shares, coming in about 47% above its three-month average of 67.3 million shares. American Airlines Group IPO'd in 2005 and has fallen 34% since going public.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) added 0.37% to finish at 7,473, while the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 0.19% to close at 26,344. Among airline peers, Delta Air Lines (NYSE:DAL) closed up 0.65% at $76.14, and United Airlines (NASDAQ:UAL) ended up 0.32% at $99.96 as investors weighed travel demand and fuel costs across the industry.

What this means for investors

American Airlines stock traded higher today as oil prices dropped on hopes that negotiations between the U.S. and Iran might lead to an end to the conflict and a reopening of the crucial Strait of Hormuz. A Bank of America report this week showing airline demand remains strong, as well as the opening of four new routes, also helped boost the stock.

Longer term, the company could benefit from the demise of Spirit Airlines and a credit card agreement with Citigroup. However, the stock is still down almost 10% so far this year, and until there’s a clear path to normalize oil supplies, it is likely to be volatile.

Investors will be watching CEO Robert Isom on May 27 when he speaks at Bernstein’s Annual Strategic Decisions Conference for more on how the company will mitigate the impact of high fuel costs.

Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.