Airline stocks were taking a dive in premarket trading Wednesday, as part of a broad stock market selloff in the wake of the White House's grim warning (American Airlines Group Inc. (AAL), JetBlue Airways Corp. (JBLU) and Mesa Air Group Inc. (MESA) to hold from buy, while upgrading Hawaiian Airlines parent Hawaiian Holdings Inc. (HA) to hold from sell on valuation. Among the more-active airlines ahead of the open, shares of American sank 5.4%, JetBlue dropped 6.2%, Delta Air Lines Inc. (DAL) shed 5.2% and Southwest Airlines Co. (LUV) lost 5.4%. The U.S. Global Jets ETF (JETS) declined 6.0% ahead of the open, while futures for the Dow Jones Industrial Average slid 847 points, or 3.8%.) on the coronavirus pandemic. Analyst Joseph DeNardi at Stifel Nicolaus said the "near worst-case scenario" is playing out for airlines, with more stringent travel restrictions and quarantines being implemented are resulting in further demand weakness, and with concerns that COVID-19 will re-emerger later in the year. DeNardi expects airlines to suspend flying for a period this summer. He downgraded
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 01, 2020 08:28 ET (12:28 GMT)
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