Flight Chaos Peaks—So Why Are U.S. Airline Stocks Still Cruising? (’It’s Only Going to Get Worse’)
Another day, another cascade of grounded flights—but Wall Street shrugs. U.S. carriers face operational meltdowns while investors keep boarding the same turbulent ride. When does the disconnect become unsustainable?
The irony burns brighter than jet fuel: Airlines hemorrhage credibility with every cancellation spike, yet their stocks trade like they’re on autopilot. No turbulence in the ticker tape—just steady altitude despite the storm clouds.
Efficiency theater at 30,000 feet: Cost-cutting measures (read: skeleton crews) backfire spectacularly as delays compound. Passengers riot; shareholders yawn. Another masterclass in short-termism from an industry that never learns.
Cynic’s corner: Maybe markets priced in ‘customer rage’ as a negligible line item. Or perhaps airlines finally perfected their real product—transferring wealth from travelers to executives—with flawless execution.
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Over 2,800 flights were canceled on Sunday, with more than 10,000 delayed. Already, within the early hours of Monday, over 1,400 flights within, into, or out of the U.S. were canceled, with 788 delayed, according to flight tracking and data platform FlightAware.
Shortages of air traffic control staff — who have not been paid for weeks as the shutdown enters its 41st day — have continued to exacerbate air travel planning, forcing aviation authorities to ask commercial airlines to reduce their daily flights across 40 major airports.
How Are Airline Stocks Doing?
During pre-market trading on Monday, shares of American Airlines (AAL), the biggest U.S. commercial airline, ROSE 1.25% to $13.82. Those of its competitors, Delta Air Lines (DAL) and United Airlines (UAL), also gained 1.32% and 1.52% to $59.66 and $98.91, respectively, as of 6:09 a.m. EDT.
Moreover, as of the close of trading on Friday, the NYSE Arca Airline Index rose 1.75% to 1.0758. The index tracks the stock prices of major domestic airlines as well as international carriers such as Copa (CPA) and Ryanair (RYAAY).
‘It’s Only Going to Get Worse’
Airline stocks have remained resilient in the face of flight delays and cancellations, as the U.S. federal government remains shut over partisan disagreements relating to funding for fiscal year 2026. Sean Duffy, the U.S. Transportation Secretary, believes that “it’s only going to get worse,” referring to the air travel situation, while speaking with CNN.
Duffy expects traffic volume to drop dramatically two weeks before the Thanksgiving holidays, which this year falls on November 27. The government official’s comment comes as the U.S. Senate on Sunday voted to MOVE forward with a bill that seeks to end the government shutdown.
What Are the Best Airline Stocks to Buy?
With the ongoing U.S. federal government shutdown keeping the aviation sector on edge, picking the right airline stocks becomes all the more crucial. Analysts believe that despite the uncertainty, there are still opportunities for investors, as the TipRanks Stock Comparison tool below shows.
