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Despite an expected summer travel boom and higher airfares, airline stocks have tumbled amid concerns about a possible economic slowdown.

Shares of American Airlines (AAL) dropped 8.6% yesterday, while Southwest Airlines (LUV) shares tumbled 6%. Delta Air Lines (DAL) and United Airlines (UAL) shares shed more than 7%. The NYSE Arca Airline Index (XAL), which tracks 18 carriers, lost more than 8%.

Strong travel demand following more than two years of the pandemic has led to a boom, with Delta, United, and American all forecasting a return to profitability. However, the industry has also faced disruptions leading to cuts in summer flying plans.

Meanwhile, Transportation Secretary Pete Buttigieg met virtually with CEOs and other senior leaders of the major U.S. airlines. He pressed airlines to detail steps they’re taking heading into the July 4th holiday and the rest of the summer, and asked them to stress-test their schedules for the coming months to ensure they have enough staff to operate flights.

The meeting follows nearly 2,800 flight cancellations over the Memorial Day weekend. Airlines have blamed staffing shortages, supply chain dynamics, pandemic-related challenges, and weather for the cancellations.

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