Why Boeing and Airline Stocks Are Falling Today
On Tuesday, airline stocks got a lift after United Airlines Holdings (NASDAQ: UAL) said that so far, at least, demand is holding up well in the face of rising inflation. On Wednesday, the focus shifted to fears over how long that can last. Shares of United, American Airlines Holdings (NASDAQ: AAL), and Spirit Airlines (NYSE: SAVE) all fell about 5%, and planemaker Boeing (NYSE: BA) also traded down by a similar amount.
As I said yesterday, these are volatile times to be investing in airline stocks. The sector took it on the chin during the early days of the pandemic, with airlines scrambling to remain liquid as demand fell to near-zero. Demand has recovered nicely so far in 2022, but now new concerns including higher fuel and labor costs and the impact of soaring inflation are weighing heavily on investors.
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Source Fool.com
