Even After the Recent Sell-Off, You Should Still Avoid These Airline Stocks Right Now

The rapidly spreading COVID-19 pandemic has wreaked havoc on the airline industry over the past month. In recent weeks, the leaders of virtually every major U.S. airline have warned that booking activity has plunged to negligible levels. Some airlines are projecting revenue declines of 80% or more for the second quarter. This has sent airline CFOs scrambling to line up new sources of liquidity and forced airlines to implement unprecedented near-term capacity cuts.

Not surprisingly, airline stocks have plunged because of this crisis. Shares of global airline giants American Airlines (NASDAQ: AAL) and United Airlines (NASDAQ: UAL) have been among the big losers. On a year-to-date basis, they have fallen 64% and 73%, respectively. Nearly all of those declines have come in the past month.

Continue reading

Source Fool.com