Why Shares of United Airlines Holdings Are Down Today
Shares of United Airlines Holdings (NASDAQ: UAL) fell 5% on Tuesday as the entire sector remained under pressure following comments by Boeing's CEO predicting some airlines would fail. United is under particular duress because an airline it is associated with, Colombia's Avianca Holdings (NYSE: AVH), has succumbed to bankruptcy.
Airlines have been among the sectors hardest hit by the COVID-19 pandemic, with traffic down around the globe. That's led to significant retrenchment by the industry, cutting flights and grounding planes, and has left equity holders bracing for the worst.
In a pre-taped interview that aired Tuesday, Boeing CEO David Calhoun predicted a "major" U.S. carrier would "most likely" go out of business this year, adding to investor fears and putting the stocks under further pressure.
Source Fool.com
