Why Shares of Delta Are Falling Today
Shares of Delta Air Lines (NYSE: DAL) traded down more than 7% on Monday as investors continue to digest the impact of the COVID-19 pandemic on the industry. The airlines got their $50 billion government relief package last week, causing a multiday rally in the shares, but even with stimulus this industry still faces a challenging future.
The airlines have been hard-hit by the pandemic, with travel demand grinding to a halt as the virus has spread globally. Delta said earlier this month that it is currently burning through $350 million a week and expects second-quarter revenue to fall 80% year over year.
Delta's long-term credit rating was cut to junk status last week due to fears of a sustained downturn.
Source Fool.com
