Airline stocks fall amid concerns that the travel recovery from the COVID-19 lows have slowed

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Airline stocks were broadly lower Wednesday, after a number of air carriers provided travel demand and capacity outlooks that raised concerns that the the recovery from the COVID-19 lows has slowed. Although the Dow Jones Transportation Average rose 2.0%, all six of the index’s airline components sold off, led by American Airlines Group Inc. stock’s 4.9% drop. United Airlines Holdings Inc. shares shed 3.7%, after the company cut its third-quarter outlook for capacity and passenger revenue, while Alaska Air Group Inc.’s stock slid 3.7% after the said August load factor was 46%, down from 54% in July, and that it expects September load factor in the 40% to 45% range. Hawaiian Airlines parent Hawaiian Holdings Inc. shares lost 3.8% after the carrier cut its third-quarter capacity outlook, amid new quarantine requirements. Among other airlines, shares of Delta Air Lines Inc. slid 2.8%, Southwest Airlines Co. declined 3.7%, and JetBlue Airways Corp. gave up 2.1%. Separately, the Bureau of Transportation Statistics said Wednesday that U.S. airlines employed 706,824 workers in mid-July, up from 699,723 in mid-June and down from 753,465 in March. The weakness in airline stocks comes as the Dow Jones Industrial Average surged 568 points, or 2.1%.
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