The airline stocks--and travel stocks in general--have taken a beating because of the spread of the coronavirus.
Jim Cramer weighed in on whether or not the airline stocks are a good economic indicator
Southwest (LUV) - Get Report Chief Executive Gary Kelly told employees that he would take a 10% pay cut as the coronavirus outbreak wreaks havoc on the global travel industry, The Wall Street Journal reported.
The company is also considering reducing its flying schedule and is taking other cost-cutting measures.
The coronavirus has caused what Kelly, in a video message to employees on Monday, described as an "alarming" drop in bookings.
Delta said it will be cutting flight capacity by 15% overall in response to a drop in demand triggered by the coronavirus.
The biggest cuts will come in international flights, with Delta cutting capacity 20% to 25%, while reducing domestic capacity by 10% to 15%.
Flights to the Pacific region are taking the biggest hit, with Delta reducing capacity by 65%. Transatlantic flights will see a more modest drop, 15% to 20%.
Watch the full video above for Cramer's full take.
And, if you missed it, watch Cramer answer five of the top questions facing Wall Street.
Catch up on the Latest Videos on TheStreet!
- Jim Cramer Answers Five Questions Wall Street Faces Following Selloff
- Stocks Get Hammered Monday: Here's the Bull v. Bear Debate
- How to Approach Your 401k Following Monday's Market Selloff
- Stocks to Consider if There Is a Coronavirus Pandemic
- A Legendary Investor Reveals How to Play the Markets Now
- The History Behind Warren Buffett's Berkshire Hathaway
- Women’s History Month: Wall Street Women In History: Meet the First Female Stockbroker
- TurboTax Webinar: How to Track Your Tax Refund
- TheStreet Explains: What Is the Fed Funds Rate?
- Retirement Daily: Don’t Retire With Debt: It’s Bad for Your Well-Being