Airline stocks are seeing substantial weakness during trading on Monday, contributing to the sharp pullback by the broader markets. SkyWest (SKYW) is helping to lead the sector lower after warning of weaker than expected second quarter results.
The steep losses by airline stocks are contributing to a 4.3 percent drop by the NYSE Arca Airline Index, which has fallen to its worst intraday level in ten months.
SkyWest is posting a particularly steep loss on the day, with the regional airline down by 16.8 percent. With the loss, SkyWest has also fallen to a ten-month intraday low.
The sharp drop by shares of SkyWest comes after the company warned that it now expects its second quarter results to be lower than it previously anticipated. The company said it expected to break even for the quarter compared to analyst estimates for a profit of $0.25 per share.
SkyWest also said it expects its results for the third and fourth quarter to be significantly lower than previously anticipated due to higher than anticipated expenses.
Republic Airways (RJET) is also posting a significant, falling by 8 percent and hitting its worst intraday level in almost a month.
Within the sector, US Airways (LCC) and Delta Air Lines (DAL) are also posting notable losses, sliding by 5 percent and 4.5 percent, respectively.
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