Why Airline Shares Are Falling Today

Airline stocks were under pressure on Monday after weekend reports indicating the U.S. Treasury Department is playing hardball in negotiations over bailout funds. Investors turned optimistic after the $2 trillion economic stimulus plan cleared Congress in late March, but it now appears clear the airlines will not have easy access to the funds.

Shares of United Airlines Holdings (NASDAQ: UAL) led the rout, down more than 9% as of 11 a.m. EDT, with shares of American Airlines Group (NASDAQ: AAL), Delta Air Lines (NYSE: DAL), Spirit Airlines (NYSE: SAVE), Southwest Airlines (NYSE: LUV), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), and JetBlue Airways (NASDAQ: JBLU) all down 7% or more.

Airlines have been hit hard by the COVID-19 pandemic, which has caused travel demand to dry up overnight. As companies expect revenue to fall by upward of 90% year over year, they have cut flights, grounded planes, and sought other ways to reduce expenses.

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Source Fool.com