Airline stocks weren’t doing so hot in pre-market trading Wednesday after the Federal Aviation Administration (FAA) grounded domestic flights.
The reason behind this grounding was a computer outage affecting the Notice to Air Missions (NOTAM) system. The system includes critical information that airline workers need to do their jobs. Without NOTAM, the agency was forced to ground some 5,400 flights.
According to the White House, there’s “no evidence” that this outage was caused by a cyber attack. Even so, President Joe Biden has ordered the Department of Transportation to do a “full investigation” into the incident.
It makes sense that airline stocks would drop alongside the grounding of flights. That’s money lost for these companies, as they have to delay and reschedule flights once the NOTAM system is up and running again.
Airline Stocks on the Move Wednesday
Most airline stocks were down in pre-market trading today following the NOTAM news. However, many of them have since recovered and are now seeing slight gains after the early morning dip. That includes shares of American Airlines (NASDAQ:AAL), Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV).
Investors seeking out more of the latest stock market news will want to stick around!
We’ve got all of the latest stock news that traders need to know about on Wednesday! Among that is what has shares of Party City (NYSE:PRTY) stock rising, why Warner Bros Discovery (NASDAQ:WBD) stock is gaining, as well as the latest concerning Bed Bath & Beyond (NASDAQ:BBBY) stock. You can catch up on all of this news at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.