Why Airline Stocks Plunged in June
Investors were looking to sell in June, with the S&P 500 trading down more than 8.3% for the month due to fears that inflation would lead to slower economic growth.
Airlines did much worse than the broader markets. Shares of Delta Air Lines (NYSE: DAL) fell 30% in June, according to data provided by S&P Global Market Intelligence, and shares of American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), and Southwest Airlines (NYSE: LUV) all dropped more than 20% on fears that travel demand will not hold up during difficult economic times.
Airline investors have had a lot to worry about in recent years. The industry saw revenue fall to near zero during the height of the pandemic when travel demand basically evaporated. This was supposed to be a year of recovery for the industry thanks to strong pent-up demand for vacations, but 2022 has turned out a lot more complicated than anyone had imagined.
Source Fool.com
