Why Airline Stocks Are Down Today
Airlines are already dealing with labor shortages, higher-than-expected expenses, and uncertainty about the economy. In the days to come, they will be forced to deal with the aftereffects of a major hurricane as well.
Investors are fleeing for the exits. On a bad day on Wall Street, airlines are underperforming the broader markets, with shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all down as much as 5%. Shares of other carriers including United Airlines Holdings (NASDAQ: UAL), Alaska Air Group (NYSE: ALK), and Southwest Airlines (NYSE: LUV) are down sharply as well.
Hurricane Ian's landfall seems certain to have a devastating impact on south Florida, putting lives at risk and causing more than $65 billion in projected economic damage. Tourism is a very small piece of the overall story surrounding the hurricane, and inconsequential compared to the loss of life, but the storm's aftereffect could weigh on airline demand in the months to come.
Source Fool.com
