Why Shares of American Airlines Fell Today
President Donald Trump on Tuesday afternoon said he has instructed White House negotiators to call off stimulus talks until after the Nov. 3 election. That sent airline stocks falling late in the trading session, with American Airlines Group (NASDAQ: AAL) leading the pack down with a 4.5% loss on the day.
Airlines have been hit hard by the coronavirus pandemic, and have survived this long only because of a combination of government and private funding that has given them the liquidity they need to absorb losses. The $50 billion in government support provided as part of the CARES Act is now extinguished, and the companies and their unions have been lobbying for a new round of payroll support as part of a new stimulus bill.
Image source: American Airlines.
Source Fool.com
