Due to the persistent economic and geopolitical headwinds and the possibility of a recession, investors have decreased their exposure to sectors with dim near-term prospects, resulting in significant losses for airlines lately. Despite a rebound in travel demand, the industry has been negatively impacted by high inflation, rising fuel prices, and staffing shortages.
According to FlightAware, more than 3,600 flights were delayed within, into, or out of the United States ahead of the Labor Day holiday, with 145 cancellations. In addition to operational challenges, declining consumer demand amid the rising odds of a recession has also hurt airline stocks.
