American Airlines, United Airlines, and Delta Air Lines shares are all declining following American Airlines' lowered earnings forecast and strategy shift announcement, with American Airlines experiencing the steepest drop.
Value investors are turning to the travel and leisure industry for potential growth and discounted valuations, as travel stocks catch up to the broader market.
President Joe Biden gave his approval to the Federal Aviation Administration (FAA) Reauthorization Act in a bid to improve airline passenger experience and improve air travel safety standards.
United Airlines Holdings Inc. (NASDAQ: UAL) is set to expand its fleet and routes following the FAA's lift on restrictions. This marks a significant recovery after a series of safety incidents prompted stricter oversight. The FAA's approval allows United to resume certification activities, indicating confidence in the airline's enhanced safety measures. United continues to implement further safety enhancements while collaborating closely with the FAA.