Investing.com – Airline stocks hit a pocket of turbulence in midday trade on Thursday after a mix of earnings results and warnings over Boeing’s 737 Max jet.
Southwest Airlines Company (NYSE:) rose 0.7% after it managed to make a small profit in the second quarter despite the grounding of its Boeing (NYSE:) 737 Max jets, causing it to cease flying out of Newark Liberty International Airport.
Southwest is the largest user of the 737 and said it would extend cancellations of the Max jet until Jan. 5, 2020. The jet has been grounded since March after two fatal crashes and there is no clear date on when it will take flight again.
American Airlines Group(NASDAQ:) declined 2.9% after it set unit revenue guidance below forecasts. Its second-quarter earnings topped expectations, but the company warned that it took a hit from the prolonged grounded of the Boeing (NYSE:) plane.
Spirit Airlines(NYSE:) slumped 18.6% after it warned of lower revenue per available seat mile and was downgraded to hold from buy by Deutsche Bank(DE:), according to Briefing.com.
Elsewhere in the sector, JetBlue Airways (NASDAQ:) gained 0.9%, while Delta Air Lines (NYSE:) was down 0.6%.
Written By: Investing.com