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Boeing and Airline Stocks Decline Due to the New Variant

Boeing and airlines shares fall after the outbreak of the new mutant from “Covid” and the return of travel restrictions

Shares of Boeing, airlines and travel companies fell after several European and Asian countries imposed new restrictions on travel from southern African countries due to the new variant of the Covid-19 virus, and the United Kingdom, for its part, said it would stop flights from South Africa, Namibia, Lesotho, Eswatini, Zimbabwe and Botswana, and the European Commission has proposed halting travel between the European Union and South Africa, as scientists there discovered the new mutant with a large number of mutations, raising concerns about its rapid spread.

Health officials stressed the need for more extensive research, but the new travel restrictions highlight the ability of countries to reduce travel quickly as new mutated strains are discovered, and it is reported that the highly contagious delta mutant that spread earlier this year led to a decline in travel demand and prompted some companies to delay the return of their employees to offices.

Airlines and aircraft manufacturers, such as Boeing, were optimistic about a recovery in demand within the travel sector, especially after the number of recorded infections decreased after the United States lifted entry restrictions into the country earlier this month.

Shares of travel and airline companies suffered a sharper decline than all shares in the stock market, as Boeing shares fell by more than 7%, United by 12%, Delta by 10%, American Airlines by 11%, and the hotel giant Hilton witnessed a drop in its share price also by 7% and its competitor Marriott by 10%, and it is worth noting that Delta Airlines and United are the only American airlines that did not stop their flights to and from South Africa during the next month.

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