US: The 5 biggest airlines plunged 7.5% in August, wiping out US$10b in market value
US airline investors, already absorbing the worst monthly stock performance in a year, are bracing for more disappointment. A Standard & Poor’s index of the 5 biggest US airlines plunged about 7.5% in August, wiping out about US$10b in market value. Shares fell as a price war that started between United Continental and heavy discounters spread to more carriers and markets. Analysts see more pain ahead. Three carriers, led by Delta Air Lines Tuesday cut Q3 guidance for revenue from each seat flown a mile. UBS Group AG predicts the latest skirmish will force others to do the same. The trend is worrisome because the major airlines have been boasting that industry consolidation would lead to steadier profits and smoother shareholder returns, not repeated fare battles with low-cost rivals. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-09-06/general/us-the-5-biggest-airlines-plunged-7-5-in-august-wiping-out-us-10b-in-market-value
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US: The 5 biggest airlines plunged 7.5% in August, wiping out US$10b in market value
US airline investors, already absorbing the worst monthly stock performance in a year, are bracing for more disappointment. A Standard & Poor’s index of the 5 biggest US airlines plunged about 7.5% in August, wiping out about US$10b in market value. Shares fell as a price war that started between United Continental and heavy discounters spread to more carriers and markets. Analysts see more pain ahead. Three carriers, led by Delta Air Lines Tuesday cut Q3 guidance for revenue from each seat flown a mile. UBS Group AG predicts the latest skirmish will force others to do the same. The trend is worrisome because the major airlines have been boasting that industry consolidation would lead to steadier profits and smoother shareholder returns, not repeated fare battles with low-cost rivals. <br/>
