Tired of full flights? The stock market thinks you should suck it up. Atlantic Voice James Fallows has been explaining the phenomenon of very full flights recently in a pair of posts, saying that airlines have shrunk capacity. But according to investors and traders, your flights aren't too full. At Delta's mention that the airline may increase its capacity, the market broadly disapproved. Dow Jones Newswires says the announcement, in conjunction with slightly weaker than expected earnings, has weighed down airline sector stocks today. An analyst explains why:
"Nobody wants to see capacity growth right now, given the fact the economy is still so uncertain and fuel prices are still very volatile," Stifel Nicolaus analyst Hunter Keay said.
He added that, while he doesn't believe other airlines will boost capacity for the latter part of the year like Delta, investors still are worried that airlines are going to "go back to more of the same" with increased capacity and falling earnings and revenue.
"Airlines are not going to work if they start growing capacity," Keay said.
So learn to love your middle seat in the last row.
Read the full story at Dow Jones Newswires.