Why Airline Shares Are Falling Today
Airline shares have been strong performers in the weeks since news about progress toward a COVID-19 vaccine began to flow in, with the U.S. Global Jets ETF (NYSEMKT: JETS) up 35% since the beginning of November. Some on Wall Street are beginning to question whether the sector has moved too far, too fast, and that is causing the stocks to be under pressure on Friday.
Shares of American Airlines Group (NASDAQ: AAL) led the downward push, off by as much as 6.6% in midday trading, with shares of JetBlue Airways (NASDAQ: JBLU) off as much as 6.1%, and Spirit Airlines (NYSE: SAVE) shares off by 5.4%.
Few sectors have been hit harder than airlines during the pandemic. Industrywide revenue is going to be down nearly 70% year over year, and the airlines continue to bleed millions daily as they try to run their networks with fewer passengers.
Source Fool.com
