Airlines Plunge After United Warns of ‘Essentially Zero’ Demand

By Esha Dey (Bloomberg) — 

U.S. airlines stocks sank on Thursday after United Airlines said that travel demand was “essentially zero,” and showed no signs of improving in the near term.

  • The S&P Supercomposite Airlines Industry Index (S15AIRL) dropped as much as 7.6%, while the S&P 500 Index fell 0.7%
    • Biggest decliners on the airline index included UAL, AAL, HA, ALK, DAL
  • Airlines have been one of the hardest hit sectors amid the coronavirus pandemic that has led to intensive lockdowns in several countries and decimated travel demand
  • The S15AIRL index is down 57% since mid-February when the market meltdown in the U.S. took hold; the SPX is down about 18% over the same period
  • NOTE: April 15, Airlines Erase Bailout-Fueled Gains as Enthusiasm Wanes

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