Major airline stocks like Boeing Inc. (NYSE:BA), United Airlines Holdings Inc. (NASDAQ:UAL), Ryanair Holdings plc (NASDAQ:RYAAY) and Delta Air Lines (NASDAQ:DAL) are taking a hit in the pre-market as President Joe Biden gives his approval to the Federal Aviation Administration (FAA) Reauthorization Act in a bid to improve airline passenger experience and improve air travel safety standards.
What Happened: Friday's pre-market opened for aviation with a jolt after Biden's approval for the new law. Boeing, which is already facing an outgoing CEO and numerous legal crises, was down by 0.093%, trading near $182.7. United Airlines joined the downward trend by 0.47% lower at $54.50 while Delta Airlines was down by 0.057% and trading at $52.48. Ryanair also saw its pre-market activity drop by 0.89% and was trading at $125.30.
However, their peers Southwest Airlines Co. (NYSE:LUV) and Alaska Air Group, Inc. (NYSE:ALK) were slightly better around the same time. Southwest was trading 0.07% higher at $28.00 while Alaska Airlines was 0.39% higher at $43.45.
"The bipartisan Federal Aviation Administration reauthorization is a big win for travelers, the aviation workforce, and our economy. It will expand critical protections for air travelers, strengthen safety standards, and support pilots, flight attendants, and air traffic controllers," Biden said in a statement released by the White House.
Why It Matters: The Act marks a crucial step towards improving the air travel experience for passengers. It aims to eliminate the need for passengers to navigate complex processes to claim refunds they are entitled to. The Act also takes a stand against corporations exploiting Americans through hidden fees.
The U.S. House of Representatives passed the bill on Thursday, which aimed at improving air traffic controller staffing, enhancing runway safety, and expediting refunds for canceled flights. This $105 billion, five-year measure, which passed with a 387-26 vote, was awaiting President Biden's signature. The legislative push underscored the growing urgency to bolster aviation safety following a series of near-miss incidents and a mid-air emergency involving a Boeing 737 MAX 9.
Courtesy United Airlines