Airline stocks suffered big losses on Monday, after data from the US Transportation Security Administration showed that travel demand declined last week to break a streak of 12-week increases from the bottom. of COVID-19 in mid-April.
The drop in demand comes as the number of new cases of COVID-19 in the US has increased at a record rate.
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“ We are increasingly convinced that the industry’s recovery to 2019 production levels will be a multi-year affair, and traffic levels are expected to recover in 2022 as soon as possible given recent travel trends. ” ‘.
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The US Global Jets JETS publicly traded fund,
It sank 2.2% to $ 16.13, and has lost 6.4% in the middle of a three-day streak. The ETF has recovered 34.4% since reaching its post-COVID-19 pandemic closing low of $ 12.00 on May 15, but has lost 26.5% since reaching its maximum recovery of $ 21.94 June 8.
In comparison, the S&P 500 Index has gained 0.6% since June 8.
Do not miss: Coronavirus Update: Global Case Count Exceeds 14.5 Million As US Death Toll Surpasses 140,000 With New Infections Still Rising.
The average daily number of trips through TSA checkpoints for the week ending Sunday was 664,022, down from 694,489 the week before, according to MarketWatch analysis of TSA data. The daily average for the weeks ending Sundays had increased each week since bottoming out at 97,799 during the week ending April 19.
“The short-term increase in COVID cases and quarantine measures now appear to manifest in the data and disrupt positive trends,” said analyst Savanthi Syth at Raymond James, echoing recent comments from some airlines. He said quarantine measures for domestic travelers “have added another layer to traveler discomfort.” Read more about Delta Air’s lost earnings and American Airlines job cuts.
Also read: Travelers from four more states were added to the New York mandatory quarantine.
The annual decline in the daily average of travelers for the week ended Sunday increased to 74.5% from 73.1% the previous week. That sparked a 12-week drop streak as the drop peaked at 95.8% during the week ending April 19.
Among the most active ETF components in the United States on Monday, American Airlines Group Inc. AAL,
fell 3.7%, United Airlines Holdings Inc. UAL,
decreased 4.7% and Delta Air Lines Inc. DAL,
shed 3.1%.
United Airlines sought to alleviate traveler concern by announcing measures to improve airflow and filtration, and by announcing boarding, boarding, and disembarking measures to help increase the safety of passengers and employees.
Elsewhere, Southwest Airlines Co. LUV scissors,
lost 3.4%, Spirit Airlines Inc. SAVES,
fell 5.5%, Alaska Air Group Inc. ALK,
fell 3.0%, Mesa Air Group Inc. MESA,
decreased 3.5% and Hawaiian Airlines parent Hawaiian Holdings Inc. HA,
yielded 2.9%.
“We are increasingly convinced that the industry’s recovery to 2019 production levels will be a multi-year affair, and traffic levels are expected to recover in 2022 as soon as possible due to recent travel trends. “JPMorgan analyst Jaime Baker wrote in a note to clients.
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