Why Airline Shares Are Down Today
Shares of airlines are losing altitude again on Wednesday, under pressure following a somber news conference Tuesday night in which President Donald Trump warned of a long, drawn-out battle against the novel coronavirus. Time is of the essence for airlines now that the industry has won government support to tide it over until the fall.
Shares of Delta Air Lines (NYSE: DAL) and United Airlines Holdings (NASDAQ: UAL) each traded down more than 10% at 11:30 a.m., with shares of American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and JetBlue Airways (NASDAQ: JBLU) all down more than 5%.
The airline industry's woes are by now well known: The pandemic has brought global travel to a halt, starving these high-fixed-cost businesses of revenue for a long time. The U.S. government last week stepped in to help, providing up to $50 billion in support as part of the $2 trillion economic stimulus package.
Source Fool.com
