American Airlines (AAL) stock is soaring 5.02% in intraday trading on Thursday, as investors react positively to news of a potential overhaul of the U.S. air traffic control system. The surge comes as U.S. Transportation Secretary Sean Duffy is set to urge Congress to approve billions of dollars for modernizing the nation's aging aviation infrastructure.

According to airline officials, Secretary Duffy will call for replacing aging radar, telecommunications equipment, towers, and other facilities as part of a comprehensive overhaul of the air traffic control system. While the exact cost has not been specified, Duffy has previously estimated it to be in the "tens of billions of dollars." The announcement will be made with the support of CEOs from the five largest airlines, as well as senior executives from Boeing and Airbus.

This proposed overhaul could significantly benefit American Airlines and the entire aviation industry. Modernizing the air traffic control system is expected to improve flight efficiency, reduce delays, and enhance safety measures. For American Airlines, these improvements could lead to cost savings, increased operational efficiency, and potentially higher customer satisfaction, all of which are likely contributing to the positive market reaction and the stock's impressive gain.