Why Airline Shares Are Declining Today
Airline stocks continued their plunge at the open on Tuesday before coming back somewhat on hopes that U.S. lawmakers would follow through on pledges to provide the industry with some sort of financial relief.
Shares of Hawaiian Holdings (NASDAQ: HA) were down more than 13%, while shares of Delta Air Lines (NYSE: DAL) and United Airlines Holdings (NASDAQ: UAL) were both down single-digits. Shares of American Airlines Group (NASDAQ: AAL) have been up 16% and down 7% on a volatile day.
The airline sector has been hit hard by the COVID-19 coronavirus outbreak, with global travel demand evaporating overnight. The airlines have reacted by freezing hiring, cutting schedules, and grounding aircraft, but there is a growing fear that government action is needed to avoid a flood of bankruptcy filings.
Source Fool.com
