Even though thousands of flights were canceled over the holiday season, investors bet on a rebound in travel later this year, as shares of major airlines like Delta, American and United Airlines all surged on Monday.
Major airlines' shares jumped to start the new century.
Robert Alexander is a photographer.
Airline stocks rallied on Monday, as investors shrugged off thousands of flight cancellation over the holiday season that have continued into the new year.
There were more than 13,000 canceled flights between Christmas Eve and New Year's Day.
Even though the new omicron Covid variant continues to pose a "modest, near-term risk" for airlines as it causes widespread staffing shortages and delays, effective vaccines and treatments should offset some of the downside, according to Citigroup analysts.
The Monday price action shows that investors are still optimistic, despite the recent disruptions, and that they are betting on a rebound in travel later this year.
United Airlines and American Airlines both gained more than 4%.
Budget carriers like Alaska Airlines and Spirit saw their stock prices rise.
Continue watching after the ad Visit Advertiser website.
The recent surge in Covid cases is largely responsible for the disruptions, along with severe weather at many of the country's busiest airports. Delta, United, and other airlines blamed omicron for not having enough flight crews during the holidays. United Airlines said on Monday that it would offer triple pay to pilots in order to ease staff disruptions related to Covid cases.
The analysts at MKM Partners think that airline stocks will go up in the coming years as they think a global recovery in travel demand will happen. The firm predicted in a note Monday that international travel will pick up later in the year as countries ease travel restrictions, despite the fact that the rapidly transmissible omicron variant is likely to affect airlines' financial results during the first quarter of this year. The U.S. airline industry capacity is expected to be the same this year as it was in 2019. Delta, Alaska Airlines, American and United are the top picks by the firm.
There's a problem.
Major carriers continued to deal with the effects of the coronaviruses in the year 2021. Southwest and Spirit were both down by 10% last year. United and American Airlines were the only two exceptions in the year.
As investors bet on economic recovery, stocks will rally.
Fauci suggests considering the airline vaccine mandate.
