Why Shares of Alaska Air Are Falling Today
Shares of Alaska Air Group (NYSE: ALK) traded down more than 13% on Monday after the airline announced it was cutting its schedule by another 10% and taking steps to preserve liquidity. Airline stocks have been hammered as the COVID-19 coronavirus outbreak has sent travel demand plunging, leading to questions about the viability of the global industry.
In a securities filing Monday, Alaska Air said it will reduce April capacity by at least 10% and May capacity by 15% from original expectations and added that it intends to monitor and continue to reduce capacity as needed. The airline is pursuing additional borrowings of about $500 million and suspending at least $300 million in capital expenditures, largely through the deferral of predelivery aircraft payments.
Image source: Alaska Air Group.
Source Fool.com
