Why Airline Shares Fell Today
Airline shares were under pressure again on Tuesday following a report that United Airlines Holdings (NASDAQ: UAL) is plotting significant layoffs once a government ban on job cuts expires on Sept. 30.
Shares of United closed down 4.5%, while shares of Delta Air Lines (NYSE: DAL) fell 3.8%, American Airlines Group (NASDAQ: AAL) stock was off 3.1%, and shares of Southwest Airlines (NYSE: LUV) fell 4.1%.
The airlines are prohibited from eliminating positions through the end of September as one of the conditions of a $50 billion government bailout that was part of the CARES Act economic stimulus plan. United has been more blunt than most in warning that it could face difficult decisions once that prohibition is lifted, and is reportedly planning to shrink the airline.
Source Fool.com
