Stock Market Today, Oct. 21: Airline Shares Rise After United Issues Stronger Revenue Guidance

American Airlines Group (NASDAQ:AAL), a U.S. network airline serving passengers and cargo through major hub-and-spoke operations, closed at $12.24, up 1.03%. Airline shares rose after United Airlines (NASDAQ:UAL) issued stronger revenue guidance, as investors watch fuel-cost trends.

Trading volume reached 76.3 million shares, coming in nearly 17% above its three-month average of 65.1 million shares. American Airlines Group IPO'd in 2005 and has fallen about 37% since going public.

How the markets moved today

S&P 500 (SNPINDEX:^GSPC) closed at 7,758, up 0.59%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 26,703, up 1.05%. Among passenger airlines and freight air transportation names, Delta Air Lines (NYSE:DAL) closed at $77.67, up 1.32%, and United Airlines closed at $101.67, up 3.99%.

What this means for investors

On Wednesday, Oct. 21, airline stocks extended their move after United Airlines reported record third-quarter revenue growth of 17% year over year to $17.9 billion on Oct. 20. The company was able to offset rising fuel costs with higher ticket prices as customer demand remained resilient.

United's success adds to Delta's strong quarterly results announced on Oct. 9. Delta reported record revenue of $20.2 billion, representing a 21% year-over-year increase, and it expects the next quarter's sales to grow 20% year over year. Delta's September quarter results and outlook added a fresh read on fares, fuel, and capacity discipline for the airline group. Investors are comparing those signals with American's setup.

American Airlines will release its Q3 earnings report on Oct. 22. In the second quarter, it delivered sales of $16.7 billion, the highest total in company history, representing growth of 16.3% year over year. Earlier this month, American's cash-and-miles bookings launch added a loyalty-product tailwind that could support engagement and ancillary revenue over time.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.