Why Shares of Alaska Air Fell 43% in March
Shares of Alaska Air Group (NYSE: ALK) fell 43.6% in March, according to data from S&P Global Market Intelligence, as the airline was caught up in a broader sell-off in the airline sector. The COVID-19 coronavirus pandemic is hitting the sector particularly hard and raising questions about the viability of the industry.
Airlines have seen their businesses decimated by the pandemic, as global travel demand has all but evaporated overnight. Alaska is no exception. The company in March cut its April and May schedules by 70%, suspending its cash dividend and drawing down $400 million from a credit line and borrowing $425 million in fresh cash.
Image source: Alaska Air Group.
Source Fool.com
