Investing.com -- American Airlines Group (NASDAQ:AAL) soared almost 7% to a near record-high on Tuesday, amid news that the world’s largest commercial airlines company will join the S&P 500 Composite Index before the end of the month.
The move marks a complete reversal for the Fort Worth-based company since its former parent filed for Chapter 11 Bankruptcy protection in November, 2011. The company later merged with U.S. Airways Group in February, 2013 to form the world’s largest commercial airline company.
“The largest airline in the world we certainly knew we would be in the S&P 500 at some point in time but this is earlier, I think, than most people expected,” American Airlines CEO Douglas Parker told CNBC. “It’s really good news. It is good news for our shareholders. It’s good news for American.”
American Airlines will replace Allergan (NYSE:AGN), Inc. on the S&P 500 on the S&P 500 at the close of trading on Friday. American Airlines rose 6.91% or 3.47 points to close at 53.69 on Tuesday.
Unlike some of its competitors, American Airlines chose not to hedge its holdings in oil futures when prices peaked last summer. The decision has resulted in strong earnings for the company since the global downturn in crude oil price. The added profits reportedly allowed American Airlines to raise bonuses for flight attendants by more than 12%, according to Reuters.