Airline stock prices moved up somewhat in July, responding to lower fuel prices and interest rates. American became the best (least worst!) performer of the “Big Three” as it announced plans to defer aircraft deliveries and thus take some strain off its debt-laden balance sheet. The sector continues to stack up badly against the broader indices in July, which are now solidly in the black following the summer rally.
The economy at large is sending worrisome signals. Anemic growth rates, coupled with downward moves in interest rates and sideways moves in employment, do not make for cheerful reading. It has been a disappointing economic recovery. And it’s getting long in the tooth.