Why Airline Stocks Are Losing Altitude Today
Airline stocks started Wednesday on an up note, fueled by positive commentary from Delta Air Lines (NYSE: DAL). But a grim forecast from JPMorgan Chase CEO Jamie Dimon gave rise to fresh recession fears, causing shares of Delta, American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and JetBlue Airways (NASDAQ: JBLU) to all trade down 5% or more.
As we've noted before, airline stocks are stuck in a holding pattern right now. Strong demand and pricing power is leading to higher-than-expected revenue growth throughout the industry, but that is being offset by higher costs. And with significant uncertainty surrounding issues ranging from a new COVID wave to a falloff in consumer demand, the stocks have had trouble climbing higher.
Image source: Delta Air Lines.
Source Fool.com
