Travel stocks roar back a day after virus-fueled sell-off
Travel stocks bounced back Tuesday, a day after jitters over rising coronavirus cases caused a broad market slump that hit airlines, cruise lines and hotels especially hard.
In midday trading, shares of American Airlines were up 6%, while Delta Air Lines, United Airlines and Southwest Airlines all gained at least 4%.
Cruise lines were steaming ahead too. Carnival Corp., Norwegian Cruise Line Holdings and Royal Caribbean all climbed between 5% and 7%.
Investors were waiting to see United’s second-quarter financial results, which were scheduled to be posted after the close of trading on Wall Street. Analysts expect the Chicago-based airline to lose $4.01 per share excluding federal pandemic relief and other special items.
Travel stocks took a beating and broad market indexes dropped Monday, as investors fretted whether the spread of the highly contagious delta variant of COVID-19 could cause the travel recovery to stall.
More than 2 million people a day are boarding flights in the U.S., up 50% from May 1, according to government figures.