Originally Posted by cadetdrivr

Pretty easy to explain, actually.

Virtually the entire US airline sector tanked last week out of fears that "capacity restraint" has gone out the window and airlines are starting to plan for growth and fight over market share and that margins will get squeezed as a result.

SWA started it with their announcement of larger growth plans for 2016 then the CEO of AA threw a bucket of gas on the fire in his public comments. On Wednesday alone, nearly $12B of airline market cap vaporized according to one analyst.

If it's an irrational over-reaction by the "market" then it's a great time to pick up some shares. If it's not, the ride's gonna get bumpy. Again.