By Mark Emem
- Last month, Robinhood users bought airline stocks aggressively.
- Just weeks later, they’re fleeing the embattled sector – and often incurring heavy losses.
- Six U.S. airlines are expected to report ugly second-quarter earnings this week.
Millennials have fallen out of love with airline stocks. After retail investors piled into the sector in late May and early June, the tide suddenly turned. Share prices are falling, and Robinhood traders are rapidly jumping ship.
This reversal follows a resurgence of the pandemic in the U.S., and it precedes a slew of earnings reports from domestic carriers. Neither promises airline stock investors positive news.
The growing number of cases has raised the prospect of further curbs on air travel. And the quarterly results are expected to expose staggering losses.