Investors in airlines ignored the cancellation of thousands of US flights during the holiday season, even though disruptions to flights continued until Monday, as airlines canceling more than 2,100 flights on Monday in addition to more than 5,400 flights over the weekend as severe winter weather disrupted some of the country’s busiest airports, but the disruption is starting to improve with only 250 canceled today.
During the holiday season, airlines including Delta, United and BlueJet reported that crews had experienced a spike in infections with the highly contagious Omicron mutant from the coronavirus, and the Federal Aviation Administration warned of delays as well as the number of confirmed coronavirus infections among staff rose, United Airlines, Spirit and Alaska are among the companies that offered additional fees to staff to operate the flights. Read more [Jetblue Cancels About 1,280 Flights Due to Omicron].
From Christmas Eve until New Year’s Day, airlines canceled about 13,000 flights, or 5.6% of flight schedules, and that number rose to 12% on Saturday as a winter storm entered the Midwest. Read more [Omicron Affects Airlines, Cancels Hundreds of Reservations].
However, airline shares were high during the morning trading, indicating that investors are looking forward to the rest of the year, when the demand for travel and tourism will recover according to expectations. Looking at the stock market, we notice a rise in American and United shares by more than 4% in afternoon trading, while Delta and Alaska are up 3%, shares of Southwest, which has canceled hundreds of flights over the past few days, are trading up more than 2%.