In a brief but dramatic Christmas Eve disruption, American Airlines Group Inc. (NASDAQ:AAL) grounded all flights across the United States on Tuesday due to a temporary technical outage.

The issue was resolved by 7:50 a.m. ET, with the carrier restoring operations and addressing disruptions caused by the nationwide halt.

Flights Resume After Hours Of Uncertainty

An hour earlier, the Federal Aviation Administration issued an advisory stating that the carrier had halted all flights across the country, Reuters reports.

Passengers shared their frustration on X before the issue was resolved, with one flyer reporting, "I just heard from the gate crew that there's a massive system outage and they can't scan boarding passes."

The FAA's Air Traffic Control System Command Center later issued an update lifting the nationwide groundstop for American Airlines.

Airlines Briefly Recover Losses

Investors were quick to react. American Airlines stock initially plunged over 3% in premarket trading but bounced back, erasing all losses after systems were restored.

A benchmark of airlines stocks, as represented by the U.S. Global Jets ETF (NYSE:JETS), was 0.6% lower by 8:05 a.m. in New York.

Shares of United Airlines Holdings Inc. (NASDAQ:UAL) and Delta Air Lines Inc. (NYSE:DAL) were both 0.2% higher. Alaska Air Group Inc. (NYSE:ALK) was also up 0.2%, while Southwest Airlines Company (NYSE:LUV) was unchanged.

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