[h=1]Travel Stocks Sell Off As These Nations Raise Covid Restrictions Over Delta Variant[/h]
- BILL PETERS
- 11:58 AM ET 06/28/2021
Travel stocks and other leisure names fell on Monday, as more nations imposed restrictions in an effort to contain the more contagious Delta variant of the coronavirus.
Airline stocks like Delta Air Lines (DAL) and United Airlines (UAL) fell 3.9% and 3.7% respectively. Cruise line operator Carnival Corp. (CCL) lost 6.5%. Casino stocks retreated with MGM Resorts (MGM) down 3.5%. Hotel operator Marriott International (MAR) slumped 3.6%, undercutting the low of its recent consolidation.
Hong Kong on Monday said it would bar flights from the U.K. beginning on July 1. The Delta variant of the coronavirus, first spotted in India, has been more prominent in the U.K. and has spread to dozens of countries, including the U.S.
[h=2]Travel Stocks Rebound In Jeopardy[/h] More people in the U.S. have begun traveling again, as the economy reopens.
Travel stocks had largely moved higher since taking a hit last year, when the pandemic first began. But travel stocks have moved sideways over the last several months.
More than half of the U.K. population has been vaccinated. Scientists have said the delta variant doesn't pose a big threat to people who are fully vaccinated. But vaccination rates have been uneven around the world. Vaccinations have increased in the U.S., but the rate has slowed.
Elsewhere, Portugal said travelers coming in from the U.K. would need to quarantine if they couldn't show proof of vaccination. In Spain, the government has also said that people arriving from the U.K. would need to show proof of vaccination or a negative PCR coronavirus test.
Malta has also said starting June 30, it would only allow entry without quarantine to fully vaccinated British travelers.
In Australia, Sydney has begun a two-week lockdown after an increase in Delta coronavirus cases. Other parts of the nation were also under restrictions. The government there is trying to find ways to accelerate a slow vaccination rollout.
