Why Airlines Are Down Today, but Spirit Is Flying in the Opposite Direction
Stocks are under pressure on Thursday due to continued concerns about the impact of higher inflation rates on the economy, and airlines, as is typically the case, were down more than the broader markets. Shares of United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) all traded down as much as 5%.
One notable exception is Spirit Airlines (NYSE: SAVE), the subject of a bidding war between two rival would-be buyers. Shares of Spirit climbed about 5% on new hope that a higher offer is under consideration.
Airline stocks have been hit hard by inflation fears. The sector had hoped robust summer vacation demand would help lift it out of its pandemic-induced slump, but a combination of higher fuel and labor costs and an uncertain demand picture past August has instead put the stocks under pressure.
Source Fool.com
