Why Airline Shares Are Falling Today
Airline shares remained under pressure on Thursday, continuing a downward spiral that saw many large companies lose more than one-third of their value in March. Spirit Airlines (NYSE: SAVE) led the march downward on Thursday, falling nearly 10% early in the day, while shares of American Airlines Group (NASDAQ: AAL) and United Airlines Holdings (NASDAQ: UAL) were both down more than 6%.
The airlines have been among the sectors hardest hit by the COVID-19 pandemic, with demand for travel all but evaporating overnight. The carriers have responded by cutting flights and grounding airplanes, but no amount of cost reductions can offset a steep decline in revenue.
The industry got some help late in March when the government came through with $50 billion in support, but that capital only buys time and will not be enough if demand does not quickly return.
Source Fool.com
