Why Airline Shares Are Falling Today
Airline shares were under pressure on Wednesday as a number of carriers updated their outlook for the third quarter, highlighting the slow pace of the industry's recovery. Concerns that the U.S. government will not be offering any further assistance also weighed on the shares.
Shares of American Airlines Group (NASDAQ: AAL) led the way down, off by as much as 6.1% at one point, while shares of Spirit Airlines (NYSE: SAVE) were off by nearly 6% and Southwest Airlines (NYSE: LUV) shares were down nearly 5% on a highly volatile trading day for the sector. Every U.S. airline stock is down as of 2:30 EDT, even as the S&P 500 is up more than 2.3%.
The airlines have been hit hard by the COVID-19 pandemic, which has limited air travel for much of the year and depressed industry revenue. The carriers are not expecting traffic to return until after there is a widely distributed vaccine, but the stocks in recent months have tended to trade up and down on any guidance that would suggest a quicker, or slower, recovery.
Source Fool.com
