Shares of most major U.S. airlines surged in the last half of May and the first week of June, as investors became optimistic about the potential for a V-shaped recovery in air travel demand. This belief wasn't totally unfounded. The number of people passing through TSA checkpoints increased rapidly during May and June, after bottoming out in mid-April.
However, the strong rebound of the past few months isn't going to continue. Earlier this week, United Airlines (NASDAQ: UAL) showed investors convincing evidence that the nascent recovery in air travel demand is already running out of steam.
Image source: United Airlines.