It turns out that what is happening here is that lower fuel prices are making the airlines become competitive on pricing again. With an antitrust or collusion concern in the airline ticket prices, airlines are now likely more conscious about having to lower those ticket prices. That is a thought any way, on the heels of lower ticket prices in the sector.
It has been a concern by many in the public that airlines now have limited competition in many routes due to the number of mergers that have been seen. Also, carriers have lowered their capacity to keep prices higher and to keep their costs in-line as well.
The airlines are still down handily on the day, but they have generally recovered off of lows.
American Airlines Group Inc. (NASDAQ: AAL) was down 3% at $40.75, with a 52-week range of $28.10 to $56.20 and a consensus analyst price target of $55.29.
Delta Air Lines, Inc. (NYSE: DAL) was down 2.6% at $44.53, with a 52-week range of $30.12 to $51.06 and a consensus analyst target of $59.93.
United Continental Holdings, Inc. (NYSE: UAL) was down 1.35 at $55.87, with a 52-week range of $39.46 to $74.52 and a consensus analyst price target of $78.80.
US Global Jets ETF (NYSEMKT: JETS) was down 2.6% at $23.38, against a post-debut range of $21.65 to $25.20.
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