Airline Stocks Get Hit by Short Sellers as Oil Hedge: ‘A Bet the War Does Not End Soon’
Airline stocks have become a growing target for short sellers as U.S. consumers grapple with higher gas prices. Data from S3 Partners shows that short interest in the airline average has risen from 8% to 13% of the float. JetBlue’s (NASDAQ: JBLU ) short interest is up from 20% to 29%, the largest of a group of five airline stocks. "Fuel is the airlines’ largest cost risk because it is volatile, so airline stocks have moved opposite to oil. A large decline in oil would send them higher," S3 Partners said in a blog post. The airline stocks tracked are JetBlue, Alaska Air (NYSE: ALK ), American Airlines (NASDAQ: AAL ), Delta Air Lines (NYSE: DAL ), and Southwest Airlines (NYSE: LUV ). Short interest in American Airlines and Alaska Air Lines doubled to 14% and 10%, respectively, since the Iran War began on Feb. 28. Read Also: Squeeze Watch: 10 Stocks With Over 33% Short Interest Betting Against Airlines The increased short interest in airlines is acting as an inverse trade to rising oil costs, according to S3 Partners. "The short position means short sellers are effectively long oil and do not expect the war to end soon." S3 Partners says airline stocks have moved opposite oil since th
S. consumers grapple with higher gas prices. Data from S3 Partners shows that short interest in the airline average has risen from 8% to 13% of the float. JetBlue’s (NASDAQ: JBLU ) short interest is up from 20% to 29%, the largest of a group of five airline stocks.
"Fuel is the airlines’ largest cost risk because it is volatile, so airline stocks have moved opposite to oil. A large decline in oil would send them higher," S3 Partners said in a blog post. The airline stocks tracked are JetBlue, Alaska Air (NYSE: ALK ), American Airlines (NASDAQ: AAL ), Delta Air Lines (NYSE: DAL ), and Southwest Airlines (NYSE: LUV ). Short interest in American Airlines and Alaska Air Lines doubled to 14% and 10%, respectively, since the Iran War began on Feb.
28. Read Also: Squeeze Watch: 10 Stocks With Over 33% Short Interest Betting Against Airlines The increased short interest in airlines is acting as an inverse trade to rising oil costs, according to S3 Partners. " S3 Partners says airline stocks have moved opposite oil since the Iran War began, leading to winning bets for short sellers. The five airline stocks above are down an average of 30% from their pre-war highs.
"This is a bet the war does not end soon. 2 Billion for Gas this Fiscal Year: How Higher Gas Prices Could Help Retailer Photo by Coby Wayne via Shutterstock