Airline Shares Retreat After Mass Cancellations
Shares of Southwest Airlines dropped over 5% Tuesday!
That as a market reaction, after the company canceled more than two-thirds of its flights Monday and plans to slash its schedules during the week, in a meltdown that stranded thousands of customers.
Tweet on Airlines stocks amid mass cancellations
Southwest Stock Falls, as Airline Shares Retreat After Mass Cancellations#airlines #StocksToTrade pic.twitter.com/xrYFhdIdB9
— The_Journalbiz (@the_journalbiz) December 27, 2022
FactSet Chart on Airlines Stocks
Southwest was among the worst performers in the S&P 500.
The holiday winter storm impacted flights across the country, but Southwest’s more than 2,800 scrapped flights Monday was the highest of any major U.S. airline.
Southwest’s bout of cancellations on a critical travel weekend will likely weigh on fourth-quarter earnings, analysts at Cowen and Citi both said.
Other airline stocks also lost ground Tuesday.
JetBlue Airways: -1.9%
Spirit Airlines: -1.1%
American Airlines: -0.5%
Delta Air Lines: -0.2%
The U.S. Global Jets exchange-traded fund, which tracks the airline industry, eased 0.8%.
