Airline stocks tumble as LaGuardia closure cancels 500+ flights
United down 4.5%, Delta drops 2.4% after fatal runway collision shuts key NYC hub
Airline stocks fell sharply on Monday as a fatal runway collision at LaGuardia Airport forced the complete closure of one of the nation's busiest travel hubs, cancelling more than 500 flights and triggering ripple disruptions across the US aviation network.
United Airlines Holdings slid 4.5% to $89.95, while Delta Air Lines dropped 2.4% in morning trading as investors weighed the operational and financial fallout from the incident, which occurred late Sunday night. The National Transportation Safety Board has launched an investigation.
The collision involved an Air Canada Express CRJ-900 aircraft operating as Flight 8646 from Montreal and a Port Authority fire truck on the runway at approximately 11:40 PM local time. Both pilots were killed, and 41 passengers and crew members were hospitalized, according to reports from Washington Post. The fire truck had been responding to a separate incident involving a United Airlines flight that had aborted takeoff due to an odor issue.
The Federal Aviation Administration issued a ground stop at LaGuardia, with the facility expected to remain closed until at least 2:00 PM ET on Monday. The closure affects approximately 900 daily departures and arrivals at the airport, according to Benzinga, creating cascading delays that aviation analysts warn could persist for days throughout the Northeast corridor.
"This shutdown will have cascading effects throughout the Northeast corridor and beyond, as airlines work to reposition aircraft and crews," Benzinga reported. Delta has already cancelled 79 flights, the third most among US carriers, with that number expected to increase throughout the day.
The disruption comes at a challenging time for the airline sector, which is already grappling with geopolitical tensions in the Middle East that are driving up fuel costs. Aviation fuel typically represents 30% to 45% of an airline's operating expenses, making the sector particularly vulnerable to oil price volatility.
Despite the near-term headwinds, the US airline sector remains positioned for robust performance in 2026, with global carriers projected to achieve record net profits of $41 billion. United currently trades at a price-to-earnings ratio of 8.8, with analysts maintaining a consensus target price of $135.06—roughly 50% above current levels—indicating that some investors may view the sell-off as an overreaction to what could prove temporary operational disruptions.
The NTSB investigation will focus on the communication breakdown between air traffic control and ground vehicles, a critical safety protocol that will face renewed scrutiny following this tragedy. For now, travelers are being advised to avoid the LaGuardia area as road closures compound the transportation chaos in and around New York City.