Why Airline Stocks Are Falling Today
As if airline investors didn't have enough to worry about already, now the federal government is stepping in with some pointed questions about their rising flight delays and cancellations.
Airline shares were on the decline Thursday -- a day when industry leaders were scheduled to hold a virtual meeting with Transportation Secretary Pete Buttigieg. At the close of trading, American Airlines Group (NASDAQ: AAL) was down 8.6%, United Airlines Holdings (NASDAQ: UAL) fell 8.2%, Delta Air Lines (NYSE: DAL) dropped 7.4%, and Southwest Airlines (NYSE: LUV) and JetBlue Airways (NASDAQ: JBLU) were down just over 6%. The S&P 500 finished down 4.1%.
Airline investors have had a rough couple of years. The industry was hit hard in 2020 and 2021 due to the pandemic, and its hoped-for 2022 recovery has been complicated. Pent-up demand for travel is filling planes this summer, but higher labor costs, a pilot shortage, and soaring fuel prices have combined to limit carriers' profitability.
Source Fool.com
