Airline stocks were broadly lower Wednesday, after a number of air carriers provided travel demand and capacity outlooks that raised concerns that the the recovery from the COVID-19 lows has slowed. Although the Dow Jones Transportation Average rose 2.0%, all six of the index's airline components sold off, led by American Airlines Group Inc. stock's (AAL) 4.9% drop. United Airlines Holdings Inc. shares (UAL) shed 3.7%, after the company cut its third-quarter outlook ( ) for capacity and passenger revenue, while Alaska Air Group Inc.'s ( ) stock (ALK) slid 3.7% after the said August load factor was 46%, down from 54% in July, and that it expects September load factor in the 40% to 45% range. Hawaiian Airlines parent Hawaiian Holdings Inc. shares (HA) lost 3.8% after the carrier cut its third-quarter capacity outlook ( ), amid new quarantine requirements. Among other airlines, shares of Delta Air Lines Inc. (DAL) slid 2.8%, Southwest Airlines Co. (LUV) declined 3.7%, and JetBlue Airways Corp. (JBLU) gave up 2.1%. Separately, the Bureau of Transportation Statistics said Wednesday that U.S. airlines employed 706,824 workers in mid-July, up from 699,723 in mid-June and down from 753,465 in March. The weakness in airline stocks comes as the Dow Jones Industrial Average surged 568 points, or 2.1%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 09, 2020 12:49 ET (16:49 GMT)
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