The aftermath of a major blizzard on the East Coast is having a huge impact across the country as delays pile up. The airline exchange traded fund (ETF) looks like it’s getting grounded, too.
Major air carriers have been affected by the harsh weather and severe snowstorms on the East Coast United States. J. David Goodman for The New York Times reports that amid the departures and cancellations, the prospect of ripple effects from over 4,000 canceled flights threatened to leave passengers stranded through the New Year. [Airline ETF Grows On the Fly.]
Jennifer Hoyt Cummings for The Wall Street Journal says that most major airline stocks have been unaffected…for now. If delays persist, airlines could lose $125 million to $190 per day. And if a large number of passengers don’t make it on a plane until the New Year, airlines won’t be able to log that revenue for 2010.
Guggenheim Airline (NYSEArca: FAA) hasn’t held up quite as well, losing 3% in the last 10 days. Working in the airlines’ favor right now is the sheer desire for travelers to get where they’re going, particularly because those flights are more for pleasure than business. [Giving the Airline ETF a Pat Down.]
Don’t count out the airlines just yet. Pent-up demand and the will to get where we’re going should keep them afloat in the long run.
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.