Airline stocks are down on Wednesday as a variety of factors are weighing on the sector and dashing investors’ hopes.
Starting off the bad news for today, airlines are expecting fuel prices to remain high. It makes sense that this news would hamper airline companies’ shares today as it eats into their quarterly profits. And building on that idea are two airline companies that have cut their profit guidance.
First up is American Airlines (NASDAQ:AAL), which is dropping its earnings per share guidance for the third quarter of the year to between 20 cents and 30 cents. Its prior estimate had EPS reaching as high as 95 cents. Investors will also note this guidance is well below Wall Street’s estimate of 65 cents per share.
Next is Spirit Airlines (NYSE:SAVE), cutting its margins guidance from -5.5% to -7.5% to -15.5% for the third quarter of 2023. Adding to this is the airline company reducing its revenue outlook to $1.245 billion to $1.255 billion from $1.3 billion to $1.32 billion. For the record, Wall Street’s revenue guidance for the quarter is $1.32 billion.
Let’s check in on how these stocks are performing today below!
Airline Stocks Down on Wednesday
- AAL stock is first on our list, with the company’s shares down more than 4% as of Wednesday morning.
- SAVE shares are next, with the company’s stock falling over 2% as of this writing.
- Delta Air Lines (NYSE:DAL) joins our list, with its shares decreasing more than 2% this morning.
- JetBlue Airways (NASDAQ:JBLU) stock is likewise sliding over 2% lower on Wednesday.
- United Airlines (NASDAQ:UAL) shares close out our airline stocks down today with a more than 2% decrease.
Investors looking for more of the most recent stock market news today will want to keep reading!
We have all of the biggest stock market stories that traders need to know about on Wednesday! Among those is a new shareholders meeting date for T2 Biosystems (NASDAQ:TTOO) investors, why Chinese electric vehicle (EV) stocks are down today, and more. You can catch up on all of this news by checking out the following links!
More Wednesday Stock Market News
- TTOO Stock Alert: T2 Reschedules Annual Meeting to Sept. 15
- Why Are Chinese EV Stocks NIO, XPEV, LI Down Today?
- Why Is Sigma Lithium (SGML) Stock Up 14% Today?
On the date of publication, William White did not have (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.