Why Airline Shares Are Down Again Today

Airline stocks, after boasting substantial gains last week, have done a U-turn in recent days, with a prominent Wall Street analyst warning on Wednesday that last week's rally on potential good news about travel demand appears overdone.

Shares of Spirit Airlines (NYSE: SAVE) traded down more than 13% as of 12:30 p.m. Wednesday, with shares of JetBlue Airways (NASDAQ: JBLU) and Alaska Air Group (NYSE: ALK) each down 10%. The news wasn't much better for holders of other airlines, with shares of Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), Hawaiian Holdings (NASDAQ: HA), and Allegiant Travel (NASDAQ: ALGT) all down at least 7%.