Why Shares of United Airlines Lost Altitude Today
Airline shares were under pressure on Tuesday, with United Airlines Holdings (NASDAQ: UAL) falling 5.1% at its low. It was news from another carrier, American Airlines Group (NASDAQ: AAL), that was weighing on investors. But with COVID-19 hanging over the entire industry, one carrier's news tends to ripple to other stocks.
The airlines have been hit hard by the pandemic, but the industry traded a moratorium on layoffs for $25 billion in government payroll support earlier this year and have so far avoided massive downsizing. That deal expires on Sept. 30, and we are getting a clear picture of how dramatic the cuts might be once it does.
Image source: United Airlines.
Source Fool.com