Why Airline Stocks Are Tumbling Today
Inflation in the United States has recently jumped at its fastest rate since 1981, and consumer sentiment is falling. Those economic indicators are raising questions about the ability of the American consumer to keep spending.
In times of uncertainty, it can be hard to pull the trigger on expensive discretionary purchases like airline tickets. Investors are running for the emergency exits, sending shares of airlines including United Airlines Holdings (NASDAQ: UAL), American Airlines Group (NASDAQ: AAL), Southwest Airlines (NYSE: LUV), and Delta Air Lines (NYSE: DAL) down about 5% apiece.
Airline investors are understandably nervous. The industry came into the year on an unstable footing, beaten down by the pandemic and the dramatic decline in travel demand that followed. Strong pent-up demand for vacation travel this summer has planes full, but a combination of labor shortages and high fuel costs are limiting the upside for airlines.
Source Fool.com
