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This Hot Airline ETF Surged 67% in 3 Weeks: Why You Should Stay Away

TheMotleyFool

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This Hot Airline ETF Surged 67% in 3 Weeks: Why You Should Stay Away

As the COVID-19 pandemic swept across the U.S. beginning a few months ago, airline traffic dried up. By mid-April, the TSA was screening fewer than 100,000 people a day, down 96% year over year.

Investors responded by dumping airline stocks indiscriminately. Despite the likelihood that business will eventually recover, even airlines with strong balance sheets like Alaska Air (NYSE: ALK) and JetBlue Airways (NASDAQ: JBLU) lost about two-thirds of their value in the span of a few weeks. This probably represented an overreaction.