- American Airlines drops to £7.29 per share on Friday that marks a record-low in over 5 years.
- Dow Jones Industrial Average declined 1.9% on Friday with Transportation index losing 2.3%.
- Multiple U.S carriers including United, Southwest, JetBlue, and Delta also declined on Friday.
The Coronavirus restrictions have brought the global travel and tourism industry to a near halt. Naturally, the impact on worldwide airlines is the strongest. In recent news, American Airlines Group (NASDAQ:AAL) announced on Friday that its international capacity will be slashed by 60% in the summer that is known to be the peak travel season.
Following the announcement, American Airlines Group lost traction in the stock market and declined 7.9% in the afternoon session on Friday. Closing the week at £7.69 per share, the stock marked a record low in more than 5 years.
American Airlines Had Gained 53% In 3 Days In late March
Towards the end of last month, the U.S carrier had recovered in the stock market following the announcement of the government aid package. American Airlines had gained 53% in 72 hours from its previous low of £8.35 per share. Following Friday’s decline, the stock has now lost all of its gains that it posted in the last week of March.
On March 26th, American Airlines had recovered back to £12.76 per share. The gain, however, was seen unsustainable as the company started its 6-day streak of losing that ended with a 7.9% decline on Friday to print £7.69 per share. In the extended trading on Friday, the company lost further to post £7.29 per share in the stock market. Compared to its high on March 26th, American Airlines has now lost a little under 45%.
American Airlines took the lead on Friday in contributing to a 2.3% decline in Dow Jones Transportation Average.
Other U.S Carriers That Dropped In The Stock Market On Friday
It was, however, not the only U.S carrier to have been reported under pressure on Friday. United Airlines also traded 4.3% lower on Friday while a 3.7% decline was recorded in Southwest Airlines.
Other players of the airline industry that lost in the stock market include JetBlue Airways that dropped 3.0%, Delta Air Lines that lost 2.1%, and Alaska Air Group that traded 0.7% down on Friday.
The Down Jones Industrial Average at large shed 395 points on Friday and traded 1.9% down.