Why Shares of JetBlue Airways Fell Today
Shares of JetBlue Airways (NASDAQ: JBLU) fell 9.8% on Monday, after nearly doubling last week. Investors rightly were excited last week that lawmakers in Washington were able to forge a relief package for the struggling airline industry. But even with the bailout complete, the challenge for the airlines is far from over.
JetBlue has been part of the stampede by airlines to cut flights and ground planes in response to the COVID-19 coronavirus pandemic, which has cut demand for air travel and led to concerns about the health of the industry.
The industry received $50 billion in loans and grants as part of the $2 trillion economic stimulus plan, but airline rivals have been clear that the cash infusion might not be enough if the downturn continues. Even if the pandemic is brought under control in the coming weeks, the economic impact is likely to reverberate for months to come and could lead the U.S. into a prolonged recession.
Source Fool.com
