Why Airline Stocks Are Falling Today
Airline shares drifted lower on Monday along with the broader markets as investors appear to be having second thoughts about the speed with which the U.S. economy is reopening and the long-term implications of the COVID-19 pandemic. Markets, and airline stocks, were in the green last week as states began to talk about how to reopen, but it is clear there will be no quick recovery.
Shares of United Airlines Holdings (NASDAQ: UAL) opened down 7.7%, while Delta Air Lines (NYSE: DAL), American Airlines Group (NASDAQ: AAL), and Southwest Airlines (NYSE: LUV) all opened down 5%. The shares recovered some of those losses by midday, but it looks like another volatile day for airline stocks.
Airlines have been hit hard by the pandemic, with the U.S. industry losing billions in the first quarter and expecting even worse losses in the second. The industry has grounded planes and cut schedules, and airlines have added liquidity through equity sales, debt offerings, and government support, but they still face an uncertain future.
Source Fool.com
