Airline stocks fall sharply on Trump move to end stimulus talks

Shares of major airlines fell on Tuesday after US President Donald Trump said his administration would abandon talks with congressional Democrats over proposals to spend at least $1.6t in additional coronavirus relief funds. A key component was a new $25b bailout for US passenger airlines to keep tens of thousands of workers on the job for another six months. A prior $25b airline payroll support program expired on Sept. 30. American Airlines, whose shares had been trading higher, reversed course to close about 4.5% lower after Trump's tweet on ending talks, while shares of United closed 3.6% lower. Southwest Airlines stock fell 2.4% and Delta shares closed 2.9% lower. American Airlines and United Airlines last week began laying off 32,000 workers, but had said they would reverse course if lawmakers reach a deal. Airlines for America, the trade group representing major US airlines, noted “thousands of airline workers across the country have already lost their jobs – and more furloughs are expected in the coming weeks.” But the group added “there is a glimmer of hope that our leaders in Washington will act and save these jobs before it’s too late.” The US Travel Association said “with millions of Americans suffering, it is woefully shortsighted to end relief negotiations” and added that “without immediate aid, 50% of all travel-supported jobs will be lost by December — an additional loss of 1.3m jobs.” Association of Flight Attendants-CWA International President Sara Nelson said “Trump issued one tweet to blow up the deal and leave millions of essential workers in freefall. Senate Republicans will own this cruel maneuver that puts our economy in a tailspin unless they demand COVID relief now.” American Airlines said it will “continue to make the case in Washington that action is needed.”<br/>