ULCC - Airline stocks decline after global COVID concerns crop up again

Airline stocks trade weaker on global concerns over the tighter COVID restrictions in place in some European nations and rising case and hospitalization counts in some sections of the U.S. Against that backdrop, Wolfe Research upgraded both Delta Air Lines (DAL -2.1%) and Southwest Airlines (LUV -1.5%) to an Outperform rating after having both set at Peer Perform. Analyst Hunter Keay: "Neither got stupid overnight. In fact, both of those airlines are facing the same problem: they’re paying the price for acting quickly when Covid hit. No other airlines were more aggressive on headcount cuts early in Covid, and both are quite frankly scrambling to catch back up." Sector watch: American Airlines (AAL -1.1%), United Airlines (UAL -3.9%), JetBlue (JBLU -2.3%), Hawaiian Holdings (HA -3.9%), Alaska Air Group (ALK -2.3%), Allegiant Travel (ALGT -2.4%), Spirit Airlines (SAVE -2.6%), Mesa Airlines (MESA -4.2%), SkyWest (SKYW -4.4%), Sun Country Airlines (SNCY -3.1%)

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Airline stocks decline after global COVID concerns crop up again