An American Airlines Boeing 777-300ER plane takes off from Sydney Airport in Sydney, Australia, October 28, 2020. REUTERS/Loren Elliott/File Photo
NEW YORK, Sept 9 (Reuters Breakingviews) – For airline investors, down is up. On Thursday, American Airlines (AAL.O) warned that revenue in the third quarter would fall more than expected as September bookings slowed. Its stock rose 5%. Delta Air Lines (DAL.N), United Airlines (UAL.O), and JetBlue Airways (JBLU.O) all expressed similar sentiment. Each of their stock prices increased.
Until lately, up was down too. Even as vaccinations for Covid-19 have become more widely available and government travel restrictions have lifted, United's share price has fallen around 20%. American’s shares tell a similar story.
The trouble may be that the longer-term future of airlines is becoming harder to predict, so investors are inclined to discount good news and be relieved when the worst-case scenario doesn’t happen. Still a recovery that is further prolonged certainly isn’t first-class . After several quarters of burning cash despite getting costs in check, many airlines swung back to the black last quarter, but just barely . (By Lauren Silva Laughlin)
On Twitter http://twitter.com/breakingviews
Capital Calls – More concise insights on global finance:
Christine Lagarde channels Margaret Thatcher read more
Surging Sea skillfully rides the wave read more
Valuing Ant becomes all art, no science read more
AMC box office boon doesn’t uphold meme value read more
Buyout barons can bark louder for German pet group read more
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.
Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.
The American dollar store is the modern-day version of what was known during the Depression era as the five-and-dime. But as with the stores that sold goods for pocket change back then, inflation and changing habits are now taking their toll on dollar stores.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Information, analytics and exclusive news on financial markets – delivered in an intuitive desktop and mobile interface.
Access to real-time, reference, and non-real time data in the cloud to power your enterprise.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2021 Reuters. All rights reserved