Why Airline Stocks Fell Today
Wall Street is beginning to worry that the U.S. economy is headed toward a recession, and analysts are making calls on individual sectors based on those fears.
Airlines historically have been vulnerable to downturns, and the sector lost altitude after a dire warning about what is to come. Shares of JetBlue Airways (NASDAQ: JBLU) led the way, down 11% on the day, while shares of Frontier Group Holdings (NASDAQ: ULCC) fell 8% and shares of Southwest Airlines (NYSE: LUV) lost 5%.
When times are tough, Americans are more likely to cut back on travel spending than they are groceries. That has always made airlines a cyclical business, performing well in a strong economy but faltering during a slowdown.
Source Fool.com
Southwest Airlines Co. Stock
€33.54
-2.310%
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