Airline Stock Roundup: U.S. Stimulus Aid, DAL's Coronavirus-Related Warning & More
Zacks Investment Research | Mar 27, 2020 12:56AM ET
With the coronavirus pandemic wrecking the airline industry, federal help was sought by U.S. airlines to stay afloat. Carriers received positive news on that front over the past five trading days with the Senate passing an emergency relief package. Of the total amount worth $2 trillion, U.S. airlines are eligible to receive a total of $62 billion in loans as well as grants.
In another coronavirus-related update, Delta Air Lines (NYSE:DAL) expects second-quarter 2020 revenues to be slashed by $10 billion, indicating an 80% decline from the year-ago reported figure. Moreover, Hawaiian Holdings’ (NASDAQ:HA) subsidiary Hawaiian Airlines withdrew its first-quarter 2020 and full-year guidance due to waning travel demand as a result of the pandemic.
Additionally, Alaska Air Group’s (NYSE:ALK) subsidiary Alaska Airlines announced plans to reduce capacity by 70% for April and May due to the coronavirus-induced low demand scenario. Notably, extremely low air-travel demand due to this hazard had prompted carriers to come up with a flurry of capacity reduction .
Performance
The following table shows the price movement of major airline players over the past week and during the past 6 months.
The table above shows that all airline stocks have traded in the green over the past week, resulting in the NYSE ARCA Airline index rallying 30% to $52.46. Enthusiasm pertaining to the stimulus package bumped up the stocks. Over the course of past six months, the NYSE ARCA Airline Index has depreciated 50.3%.
What’s Next in the Airline Space?
Further corona virus-related updates and its resultant impact on air travel will be awaited by investors.
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