Why Airline Shares Are Falling Today
Airline shares are under pressure on Wednesday, caught in a broader market move downward due to growing fears that a surge in new COVID-19 cases will force another round of shutdowns.
Shares of Spirit Airlines (NYSE: SAVE) were down 11% as of noon EDT, while shares of United Airlines Holdings (NASDAQ: UAL), Delta Air Lines (NYSE: DAL), and JetBlue Airways (NASDAQ: JBLU) were down 8% apiece. Shares of other carriers including American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), Hawaiian Holdings (NASDAQ: HA), Alaska Air Group (NYSE: ALK), and Allegiant Travel (NASDAQ: ALGT) were all down 5% or more.
Airline balance sheets have been devastated by the pandemic, which has caused travel demand to evaporate and starved the industry of revenue. The shares have regained some of their altitude in recent weeks on growing hopes that the worst of the pandemic is now behind us, but that optimism is seemingly diminishing by the day.
Source Fool.com
