American Airlines (AAL) stock is flying high in pre-market trading on Thursday, soaring 5.05% as positive news sweeps through the airline sector. The upward movement comes on the heels of strong earnings from industry peer Delta Air Lines and an analyst upgrade for American Airlines itself.

Delta Air Lines set a positive tone for the airline industry by beating Wall Street's earnings expectations for the second quarter. The carrier reported adjusted earnings per share of $2.10 on revenue of $16.7 billion, surpassing analyst estimates. This performance has sparked optimism about the overall health of the travel sector, lifting sentiment for other airlines including American.

Adding to the tailwind for American Airlines, Barclays has raised its target price for the company to $12 from $11. This upgrade suggests increased confidence in American's potential, despite the challenges faced by the airline industry in recent months.

While the airline sector has experienced turbulence this year, with American Airlines' stock down 34% year-to-date prior to today's pre-market surge, this latest movement indicates a potential shift in investor sentiment. As the industry navigates through economic uncertainties and fluctuating travel demand, American Airlines' pre-market rally may signal growing optimism about its ability to overcome these challenges and capitalize on the summer travel season.