SNCY - Why Airline Stocks Are Falling Today
There is growing anxiety that the so-called Delta coronavirus variant will crimp the global economy and lead to a fresh round of travel restrictions. Airline stocks were under pressure on Monday as a result, with Delta Air Lines (NYSE: DAL) , American Airlines Group (NASDAQ: AAL) , United Airlines Holdings (NASDAQ: UAL) , Southwest Airlines (NYSE: LUV) JetBlue Airways (NASDAQ: JBLU) , Allegiant Travel (NASDAQ: ALGT) , Alaska Air Group (NYSE: ALK) , Spirit Airlines (NYSE: SAVE) , Hawaiian Holdings (NASDAQ: HA) , Sun Country Airlines Holdings (NASDAQ: SNCY) , and Frontier Group Holdings (NASDAQ: ULCC) all falling 5% or more at the open.
The sell-off was global, with Brazil's Azul (NYSE: AZUL) also off more than 5%.
Airlines suffered through a miserable 2020 due to the pandemic, which all but wiped out demand for travel. Vaccines have brought a resurgence in demand and in stock prices, but there is growing reason for concern that the rally is not sustainable.
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Why Airline Stocks Are Falling Today