|The Market Is Rallying. But Airline Stocks Are Taking Off -- Barrons.com|
Dow Jones Newswires November 05, 2021 10:49:00 AM ET
Travel stocks, including some of the biggest U.S. airlines, surged early Friday as positive sentiment swept across the sector.
The mood across markets was buoyed by strong earnings and news that Pfizer's (ticker: PFE) Covid-19 pill cut the risk of hospitalization or death by 89% in a trial of high-risk non-hospitalized patients. A better-than-expected October jobs report also helped.
Travel names led the way, with shares of American Airlines (AAL) and United Airlines (UAL) stock rising close to 5% and Delta Air Lines (DAL) climbing 6% in early trading. Southwest Airlines (LUV) and JetBlue Airways Corporation (JBLU) were also up more than 5%. Cruise operators also enjoyed gains, with Royal Caribbean Cruises (RCL) and Carnival Corporation (CCL) both moving 8% higher.
The sector was also boosted by earnings from Airbnb (ABNB) and Expedia (EXPE), which provided further signs that the rebound is gathering pace. Airbnb said it had its "strongest quarter ever" as the travel rebound, which began earlier this year, accelerated in the third quarter, while Expedia also beat expectations and struck an optimistic tone when it comes to the months ahead.
The U.S.-U.K. travel corridor will open up for Covid-19 vaccinated passengers from Monday, which could provide further impetus for airlines. The reopening will be a "pivotal moment" for the industry, British Airways owner IAG's (IAG) CEO Luis Gallego said early Friday.
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