Boeing Troubles Threaten to Worsen Airlines’ Bear Market Blues
- Industry gauge on track for worst two-week drop since October
- Plane delays weigh on earnings ahead of summer travel season
Boeing has been mandated by regulators to cap output of its popular 737 Max model as federal scrutiny mounts.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
US airline stocks are heading for the worst two-week losing streak since October as volatile fuel prices and the mounting troubles at Boeing Co. tear through the industry, spurring concerns about aircraft delivery delays.
A benchmark of the sector has tumbled more than 5% over the period, the biggest drop for the group in four months. Glum outlook from Southwest Airlines Co. sent shares spiraling roughly 18% this week, the stock’s the poorest showing in almost four years. That performance is weighing on the gauge of carriers in the S&P 1500 Composite which has fallen about 21% from July’s 52-week closing high.