Investor Alert

July 19, 2021, 9:24 a.m. EDT

Airline stocks suffer broad selloff as surge in delta variant stokes fears of potential travel restrictions

Airline stocks were suffering a broad selloff ahead of Monday's open, amid a big drop in the broader stock market and as a surge of the delta variant of the coronavirus that causes COVID-19 increases fears of potential travel restrictions. The U.S. Global Jets ETF (PSE:JETS) sank 3.6% in premarket trading, putting it on track for a sixth-straight daily decline, and to extend a seven-week losing streak through Friday in which the ETF has tumbled 16.5%. Among the ETF's components, shares of American Airlines Group Inc. (NAS:AAL) slumped 5.2% premarket, after sinking 18.6% amid a six-week losing streak; United Airlines Holdings Inc. (NAS:UAL) slid 5.1%, after tumbling 21.1% amid a 7-week losing streak; and Delta Air Lines Inc. (NYS:DAL) dropped 4.2%, after losing 13.8% amid a 5-week losing streak. Elsewhere, shares of Southwest Airlines Co. (NYS:LUV) gave up 3.8% premarket, JetBlue Airways Corp. (NAS:JBLU) declined 5.4% and Spirit Airlines Inc. (NYS:SAVE) fell 5.3%. The selloff in air carrier stocks comes as futures (CME:ES00) for the S&P 500 (S&P:SPX) dropped 1.3%.

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