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American Airlines Group Inc. will be added to the Standard & Poor’s 500 Index, joining the benchmark gauge for U.S. equities in another sign of the comeback for the once-troubled U.S. industry.
The change is effective after the close of trading on March 20, S&P said Monday in a press release. Fort Worth, Texas-based American replaces Botox maker Allergan Inc., which is being acquired by Actavis Plc. American surged as much as 4.6 percent in extended trading, and climbed 3.8 percent to $52.15 at 5:48 p.m. in New York.
American’s inclusion in the S&P 500 will give the index its third U.S. carrier, following Southwest Airlines Co. and Delta Air Lines Inc. Until Delta was added in 2013, Southwest had been alone in the index as losses, bankruptcies and mergers convulsed the U.S. industry for most of the first decade of the 21st century.
The new American was created in December 2013 as former parent AMR Corp. emerged from Chapter 11 protection and combined with US Airways Group Inc. American’s shares have more than doubled since then, helping drive the Bloomberg U.S. Airlines Index to about a 79 percent gain.
This article was written by Edward Dufner from Bloomberg and was legally licensed through the NewsCred publisher network.