Air travel in the United States set another pandemic era record over the weekend as vacationers obstructed the airport, but traveled on Monday due to growing concerns about highly contagious variants of the coronavirus. Shares of airlines, cruise ships, hotels and almost all related to have plummeted.
The Transportation Security Administration said it screened more than 2.2 million people at the airport checkpoint on Sunday, the highest number since early March 2020, when the pandemic began to crush travel in the United States. Peak recorded in July.
However, according to the TSA, the Sunday mark is 18% lower than the equivalent Sunday in 2019.
Investors were not celebrating the latest evidence of travel recovery as the vaccine against COVID-19 became widely available. Inventories on airlines and cruise ships have been hit particularly hard, with inventories declining significantly in many countries due to concerns about increased infections.
American Airlines and United Airlines shares fell more than 6%, Delta fell about 5%, and Southwest Airlines fell more than 4% in the morning.
The share of the cruise line has dropped to the level last seen before the vaccine became available at the US Carnival. The same is true for Norwegian Cruise Line, which has fallen by more than 5%.
The hotel sector was also hit, and Airbnb’s share fell.
Domestic leisure travel has returned to pre-pandemic levels, according to airlines, but both international travel and business travel remain significantly lower than in 2019. This is especially bad for the United States, United and Delta, which make a significant amount of money from overseas travel and business trips. ..
Airlines have not relaxed travel restrictions so quickly, with an increase in coronavirus infections (the daily incidence of newly reported cases in the United States has more than doubled in the last two weeks. I am dissatisfied with it and may delay my move even further to facilitate my trip.
After the massive losses last year, airlines are doing better and more Americans are booking flights. Delta reported second-quarter profits last week thanks to a federal pandemic bailout. United, American and Southwest report this week’s results.