Airline stocks were rocked Wednesday, as United Airlines Holdings Inc.’s profit warning due to the negative impact of the Israel-Hamas war cast a pall on investor sentiment.
The Dow Jones Transportation Average DJT, of which six of its 20 components are airline stocks, slid 388 points, or 2.6%. United’s stock UAL, -8.11% sank 8% after the air carrier beat third-quarter profit expectations but provided a downbeat fourth-quarter outlook, citing flight suspensions to Tel Aviv. The longer that the Israel-Hamas war lasts, the lower the expected profit.
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