Shares of U.S. airlines tumbled in premarket trading on Monday as a brand new fast-spreading COVID-19 strain in Britain renewed fears of widespread travel bans, with many countries barring flights from the UK before the peak season.
The news comes when U.S. carriers are burning $180 million in cash daily as passenger volumes remain down nearly 70% from year earlier levels thanks to the restrictions triggered by the pandemic.
Shares of Delta Air Lines shed about 7%, while those of American Airlines and United Airlines fell about 6%. Southwest Airlines dropped about 5% in premarket trading.
The new strain, said to be up to 70% more transmissible than the first. This has prompted Canada, Germany, Italy and also the Netherlands to suspend flights from Britain. France has also barred freight carriers.
Investors also shrugged off the $15 billion in new payroll assistance for U.S. airlines. Which is expected to be finalized on Monday, as a part of a new coronavirus aid.
Shares of other U.S. travel companies too were lower on Monday.
More information about:
- Airlines Face Bankruptcy Without Govt Aid
- Review Malaysia Airlines Management Before Pumping In More Money