: Airline stocks fall again, with Southwest and JetBlue shares at multiyear lows

by | Sep 26, 2023 | Stock Market

The airline sector was suffering another broad selloff Tuesday, amid worries over how a government shutdown will hurt the industry and as falling ticket prices raise concerns over profitability. The U.S. Global Jets ETF
dropped 1.2% in afternoon trading toward a fifth-straight loss and the lowest close since Dec. 28, 2022. The ETF was also in danger of its fourth-straight weekly loss, and ninth weekly loss over the past 10 weeks.

Among the hardest hit air carrier stocks during the recent selloff were those of more domestic-focused air carriers. Southwest Airlines Co.’s stock
sank 2.8% toward the lowest close since May 15, 2020, according to Dow Jones Market Data. The stock has dropped 9.9% amid a seven-day losing streak, and has tumbled 15.9% over a 19-session stretch in which it has declined 16 times. Shares of JetBlue Airways Corp.
fell 1.0%, and was on track for the lowest close since May 22, 2012. They were headed for an eighth-straight selloff, which would be the longest such streak since the nine-session stretch that ended March 23, 2020. Elsewhere, Alaska Air Group Inc.’s stock
slipped 0.8% toward the lowest close since Oct. 29, 2020, and Hawaiian Airlines parent Hawaiian Holdings Inc. shares
dove 3.3% toward the lowest close since July 8, 2013. Meanwhile, shares of American Airlines Group Inc.
lost 1.1% toward a five-month low, of Delta Air Lines Inc.
slumped 1.5% toward a four-month low and of United Airlines Holdings Inc.
gave up 0.6% toward a five-month low. If Congress fails to pass legislation to renew funding by Sept. 30, and the federal government shuts down, Deutsche Bank’s Michael Linenberg said the airline industry could be hurt …

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