Collapse Spreads - Joe Blogs

[TexasTowelie]

Today we’re discussing the growing global airline crisis and why the collapse of Spirit Airlines may only have been the beginning.

Over the last few weeks we’ve seen oil prices surge above $100 per barrel as a result of the ongoing conflict involving Iran and the continued disruption around the Strait of Hormuz. That spike in energy prices is now causing major problems throughout the aviation industry, with reports suggesting that airlines around the world have already cancelled around 13,000 flights and removed millions of seats from schedules.

In this video we look at:
✈️ Why airlines are suddenly cutting flights globally
✈️ How soaring jet fuel costs are destroying profit margins
✈️ Why even major carriers like Lufthansa and Turkish Airlines are being impacted
✈️ The knock-on effects for tourism, hotels, restaurants and jobs
✈️ Why this could become a much bigger global economic problem
✈️ And whether Spirit Airlines was simply the first domino to fall

This is no longer just an airline story.

Rising oil prices impact transport, manufacturing, logistics, food prices and the cost of almost everything in the global economy. The longer this crisis continues, the greater the economic damage could become.

[progree]

1. Dow transports are nearing a bear market after erasing their entire April breakout...

Dow transports are nearing a bear market after erasing their entire April breakout: Chart of the day, Yahoo Finance, 5/5/26

The Dow Jones Transportation Average (^DJT) closed under its February breakout zone, erasing the entire April push that briefly carried the index to fresh highs near 25,000.

Transports had recently been one of the rally’s better confirmation points — part of the “most hated rally” that was still gaining strength in April.

Now the breakout is gone.

High to low, transports are now down more than 20% from that late-April INTRADAY peak — and the CLOSING drawdown is getting uncomfortably close to bear market territory. ((20% down is the criteria for the beginning of a bear market -progree))

The weakness comes at an awkward time for bulls.

The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) might be back to record highs, but transports are one of the old-school checks investors use to see whether the rally is spreading beyond the high-flying megacap leaders.

More: https://www.msn.com/en-us/money/markets/dow-transports-are-nearing-a-bear-market-after-erasing-their-entire-april-breakout-chart-of-the-day/ar-AA22pVQm

Bolding and all-caps added

Though the S&P 500 has been hitting records again, its advance/decline line — a running measure of how many stocks are rising versus falling — is sputtering. Instead of confirming the S&P 500’s new highs, the breadth gauge is starting to resemble a possible double top.