Air travel is currently in a state of chaos. TSA agents are calling out of their jobs en masse; security lines are piling up; extreme weather is delaying flights; and on March 23, President Trump deployed ICE agents to multiple major airports, causing an outcry from the public and multiple advocacy groups. And, this morning, an Air Canada plane crash at LaGuardia airport, which killed at least 2 people, was also in the headlines.
Despite all of these factors, major airlines saw share prices soar this morning. As of this writing, American Airlines stock is up more than 4%, Delta is up more than 3%, United is up nearly 5%, and Southwest is up more than 4%.
The surge comes in the wake of President Trump’s announcement that he will postpone a series of planned strikes against Iran—which, for airline investors, signals a potential financial reprieve for the industry after weeks of bad news.
Here’s what to know about the converging headwinds in the airline industry.
Why is air travel currently in turmoil?
Airlines are currently facing a litany of issues that just keep piling up.
Last week, a series of winter storms and tornadoes resulted in thousands of flight delays and cancellations—but, now that the extreme weather has settled somewhat, there are even bigger concerns at play.
The government is currently entering its sixth week of a partial shutdown due to a Department of Homeland Security (DHS) funding lapse, as lawmakers are deadlocked over funding for the Immigration and Customs Enforcement (ICE).
