WASHINGTON/CHICAGO (Reuters) – Shares of major airlines fell on Tuesday after U.S. President Donald Trump said his administration would abandon talks with congressional Democrats over proposals to spend at least $1.6 trillion in additional coronavirus relief funds.
A key component was a new $25 billion bailout for U.S. passenger airlines to keep tens of thousands of workers on the job for another six months. A prior $25 billion airline payroll support program expired on Sept. 30.
American Airlines AAL.O, whose shares had been trading higher, reversed course to close about 4.5% lower after Trump’s tweet on ending talks, while shares of United Airlines UAL.O closed 3.6% lower. Southwest Airlines LUV.N stock fell 2.4% and Delta Air Lines DAL.N