Airlines stocks under pressure as FAA computer glitch affects US flights

Airline stocks dropped slightly in off-hours trading on Wednesday after a Federal Aviation Administration computer outage caused widespread delays and cancellations of many U.S. flights.

"The FAA is working to restore its Notice to Air Missions System," the FAA tweeted early Wednesday. "We are performing final validation checks and reloading the system now." The agency announced that some functions are beginning to come back on line, but that “National Airspace System operations remain limited” and ordered airlines to delay all outbound flights at least until 2:00 pm GMT .

Nearly 1,200 flights have been affected, into or out of the United States, according to the flight tracking website FlightAware. Source: FlightAware

Southwest Airlines Co.'s (LUV.US) shares fell over 2.0% ahead of opening bell and American Airlines Group Inc. (AAL.US)lost 0.8%. Delta Air Lines Inc.'s (DAL.US) stock fell 0.9% and Spirit Airlines Inc. (SAVE.US) dropped 1%. JetBlue Airways Corp. (JBLU.US) shares tumbled 0.5% 

United Airlines (UAL.US) stock fell over 0.50% after the company temporarily delayed all US flights and will provide more information once it learned more from the FAA.

United Airlines (UAL.US) stock rose sharply at the beginning of the new year and yesterday price reached a key resistance zone around $46.00 which coincides with 38.2% Fibonacci retracement of the upward wave launched in March 2020 and upper limit of the long-term descending channel. Nevertheless, taking into account recent news, a deeper pullback cannot be ruled out. Nearest key support to watch is located at $40.50. Source: xStation5