Airline Stocks Are Plunging: Is Now the Right Time to Buy In?
When oil prices spike higher, airline stocks typically sell off. Such was the case on Monday. Crude prices hit levels unseen since 2008, and airline stocks are badly underperforming the market on a down day for equities.
By around noon ET, shares of United Airlines Holdings (NASDAQ: UAL) fell as much as 9%, with shares of JetBlue Airways (NASDAQ: JBLU), Spirit Airlines (NYSE: SAVE), Alaska Air Group (NYSE: ALK), Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all down more than 5%.
The airline business runs on jet fuel, with energy accounting for upward of 30% of operating costs. And although most airlines had forecast higher jet A prices heading into 2022, none predicted the dramatic surge higher that has followed Russia's invasion of Ukraine.
Source Fool.com
