PAC - Why Latin American Airline Stocks Are Falling Today
After a brief rally Latin American airlines are now back on the descent, as growing fears of a second wave of the pandemic are outweighing optimism that the worst of the initial wave is now behind us.
Shares of Brazilian airline Azul (NYSE: AZUL) are down more than 20% heading into the close, with shares of domestic rival Gol Linhas Aereas Inteligentes (NYSE: GOL) off 16%. Copa Holdings (NYSE: CPA) of Panama was down 11%, as was Mexican airport operator Grupo Aeroportuario del Pacifico (NYSE: PAC).
COVID-19 has hit the global airline business hard, pushing travel demand down to near-zero and forcing airlines to scramble to cut costs, raise cash, and ride out the storm. Latin American airlines have been hit particularly hard because of their reliance on international travel, which has fallen more than domestic demand and is likely to be complicated for months to come as different nations impose different restrictions.