Why Airline Stocks Are Falling Today
Airline stocks took a breather on Friday after three straight days of steady gains. The industry's outlook is much stronger now than it was a week ago thanks to the $2 trillion economic relief package making its way through Congress, but business conditions figure to be under pressure for some time to come.
Shares of Southwest Airlines (NYSE: LUV), American Airlines Group (NASDAQ: AAL), United Airlines Holdings (NASDAQ: UAL), JetBlue Airways (NASDAQ: JBLU), and Spirit Airlines (NYSE: SAVE) all opened down more than 10% before rebounding slightly as the day went on. Shares of Delta Air Lines (NYSE: DAL) and Hawaiian Holdings (NASDAQ: HA) are also down more than 5% on Friday.
Airlines have been among the sectors hit hardest by the COVID-19 pandemic, with travel demand all but disappearing overnight and revenue dropping by 80% or more. The companies have taken steps including cutting flights, grounding planes, and freezing hiring, but no amount of cuts can compensate for a lack of revenue coming through the door.
Source Fool.com
