Why Boeing Shares Are Down Today
Shares of Boeing (NYSE: BA) fell more than 6% on Thursday morning after Delta Air Lines (NYSE: DAL) said it was permanently retiring its fleet of Boeing 777 aircraft by year's end. The announcement only confirmed what we already know -- that airlines are shrinking -- which might explain why Boeing's shares recovered somewhat after the open. But even if it isn't a complete surprise, the news is not good for Boeing.
Airlines have been hard hit by the COVID-19 pandemic and subsequent quarantine, which has caused travel demand to fall to near zero. Delta and other carriers have responded by shrinking their schedules and grounding planes. Some of those groundings are temporary, but if traffic takes two years or more to return to prepandemic levels, some of them will become permanent.
Image source: Boeing.
Source Fool.com