Why Shares of Airlines Are Falling Today
After a brief rally earlier in the week on hopes of an improving economy, airline shares are in the red once again on Thursday. Some of the nation's largest airlines are proceeding with plans to try to cut their headcount, a clear indication that despite glimmers of hope the worst is behind us, management teams still expect a long, rough road ahead.
Shares of American Airlines Group (NASDAQ: AAL) were down 6.6% as of 2:30 p.m. EDT and shares of United Airlines Holdings (NASDAQ: UAL) were down 4.4%. Delta Air Lines (NYSE: DAL), which earlier in the day was down 5.2%, had recovered some of that loss, but were still down on a day when broader markets are up.
Airline shares have been hit hard by the COVID-19 pandemic, which has reduced travel demand to a trickle and caused carriers that a few months ago were focused on expansion to instead worry about their survival. The companies are stable, in part thanks to $50 billion in government assistance for the industry as part of the CARES Act stimulus plan, but that stability has come with a price.
Source Fool.com
