Reopening stocks from airlines to cruise operators are getting hammered as Delta strain drives surge of infections

  • Shares of cruise operators and airlines were hit Monday as COVID-19 infections ramp up worldwide.
  • Carnival, American Airlines and Expedia were among the stocks that slumped on worries of new virus infections.
  • The CDC on Monday warned travelers to avoid going to the UK because of rising infections.
  • See more stories on Insider’s business page.

Shares of airlines, cruise operators and other travel companies slumped Monday during a selloff set off in part on mounting cases of COVID-19 infections worldwide, highlighting concerns about recovery in the industry and in the global economy.

American Airlines lost 4.4% and cruise operator Carnival fell 5.4% as part of a broader slide in US stocks that saw the Dow Jones Industrial Average plunge by more than 900 points during the session. On the Dow, airplane maker Boeing moved 5% lower.

Expedia Group, the online travel bookings site which also runs Hotels.com and Trivago, gave up 2.5% and hotel chain Marriott declined 3%.

Meanwhile, Carnival, Norwegian Cruise Line Holdings fell 6% and Royal Caribbean Cruises lost 4.6% after a US appeals court ruled late Saturday that cruise restrictions put in place during the pandemic could continue in Florida, according to the Associated Press.

Video: American Airlines to cut 1% of July flights as travel rebound strains operations (Reuters)

Reuters

  • Biden signs order to tackle corporate abuses across U.S. economy

    Biden signs order to tackle corporate abuses across U.S. economy

    Reuters Logo

    Reuters

  • Slide in coronavirus-sensitive stocks suggests growing worries over Delta variant

    Slide in coronavirus-sensitive stocks suggests growing worries over Delta variant

    Reuters Logo

    Reuters

  • 15 more U.S. states reach settlement in OxyContin maker Purdue bankruptcy

    15 more U.S. states reach settlement in OxyContin maker Purdue bankruptcy

    Reuters Logo

    Reuters

  • S&P 500, Nasdaq post record closing highs after Fed minutes

    S&P 500, Nasdaq post record closing highs after Fed minutes

    Reuters Logo

    Reuters

  • Dow, S&P 500 end lower, financials among biggest drags

    Dow, S&P 500 end lower, financials among biggest drags

    Reuters Logo

    Reuters

  • Britain's Morrisons agrees $8.7 billion takeover by Fortress-led group

    Britain's Morrisons agrees $8.7 billion takeover by Fortress-led group

    Reuters Logo

    Reuters

  • U.S. economy is 'on the move,' Biden says as jobs jump

    U.S. economy is 'on the move,' Biden says as jobs jump

    Reuters Logo

    Reuters

  • U.S. companies hire more workers; signs labor crunch may be easing

    U.S. companies hire more workers; signs labor crunch may be easing

    Reuters Logo

    Reuters

  • The living's not easy for worker-hungry U.S. businesses this summertime

    The living's not easy for worker-hungry U.S. businesses this summertime

    Reuters Logo

    Reuters

  • China's Didi raises $4.4 billion in upsized U.S. IPO - sources

    China's Didi raises $4.4 billion in upsized U.S. IPO – sources

    Reuters Logo

    Reuters

  • U.S. consumer confidence at 16-month high; house price inflation heating up

    U.S. consumer confidence at 16-month high; house price inflation heating up

    Reuters Logo

    Reuters

  • U.S. consumer confidence at 16-month high; house price inflation heating up

    U.S. consumer confidence at 16-month high; house price inflation heating up

    Reuters Logo

    Reuters

  • Stretched global supply chain means shortages on summer menus

    Stretched global supply chain means shortages on summer menus

    Reuters Logo

    Reuters

  • United Airlines closes in on $30 billion post-pandemic jet order

    United Airlines closes in on $30 billion post-pandemic jet order

    Reuters Logo

    Reuters

  • Burberry chief heads home to lead rival Ferragamo

    Burberry chief heads home to lead rival Ferragamo

    Reuters Logo

    Reuters

  • Boeing 777X 'realistically' will not win certification approval before mid-2023 - U.S. FAA

    Boeing 777X 'realistically' will not win certification approval before mid-2023 – U.S. FAA

    Reuters Logo

    Reuters

  • Biden signs order to tackle corporate abuses across U.S. economy
    Biden signs order to tackle corporate abuses across U.S. economy
    President Joe Biden signed a sweeping executive order on Friday to promote more competition in the U.S. economy, urging agencies to crack down on anti-competitive practices in sectors from agriculture to drugs and labor. This report produced by Jillian Kitchener.

    Reuters Logo
    Reuters

  • Slide in coronavirus-sensitive stocks suggests growing worries over Delta variant
    Slide in coronavirus-sensitive stocks suggests growing worries over Delta variant
    Stocks fell across the board on Thursday as the surge in the Delta variant sparked concerns about the global economy, sending U.S. bond yields to a fresh February low. Conway G. Gittens has the market action.

    Reuters Logo
    Reuters

  • 15 more U.S. states reach settlement in OxyContin maker Purdue bankruptcy
    15 more U.S. states reach settlement in OxyContin maker Purdue bankruptcy
    Fifteen more states reached an agreement with Purdue Pharma LP and members of its wealthy Sackler family owners that moved the OxyContin maker a step closer to resolving widespread opioid litigation and exiting bankruptcy protection. Fred Katayama reports.

    Reuters Logo
    Reuters

UP NEXT

Travel stocks were hit as countries worldwide report rising infections of coronavirus from the Delta variant, which health experts say is the most transmissible strain yet. Infections in the US were rising in all 50 states, with Los Angeles County, the largest in the country, reimposing indoor mask mandates. Delta Air Lines declined 3.7% and Southwest Airlines gave up 2.5%, weighing on the US Global Jets ETF which fell 3.9%. COVID-19 cases have surpassed 190 million.

The headwinds battering travel stocks also helped drive a plunge in oil prices, which are being hit with supply and demand concerns as OPEC+ over the weekend agreed to boost crude output.

“Jet fuel demand will struggle as international travel is not happening anytime soon, especially given how several Americans are struggling to get their passports renewed even with expedited services. Even domestic travel to Hawaii is losing appeal given the limited availability for car rentals, lack of hospitality workers, and extreme price hikes for lodging and dining,” said Ed Moya, senior market analyst at Oanda, in a note.

On Monday, the US Centers for Disease Control and Prevention advised Americans against traveling to the UK because of the spread of COVID-19 in the country.

The UK recorded more than 50,000 new cases for the first time in six months on Friday. Travel stocks there on Monday dropped after the UK government said fully vaccinated travelers entering from France must still quarantine, a move made as French cases increase. France on Sunday posted a third day of more than 10,000 new infections.

Source: Read Full Article