Shares of major airlines such as Delta, American and United Airlines all rose on Monday, the first day of trading in 2022, as investors looked to a recovery in travel later this year – even after thousands of flights were canceled amid a surge during the holiday season new Covid cases.
Airline stocks largely rebounded on Monday as investors rejected thousands of flight cancellations during the holiday season that lasted into the new year.
After more than 13,000 US flights were canceled between Christmas Eve and New Years, the cancellations appear to be easing a bit – although around 2,300 flights were canceled on Monday, according to flight tracking website FlightAware.
Even if the new omicron Covid variant continues to represent a “modest, short-term risk” for airlines, as it causes widespread staff shortages and delays, according to Citigroup analysts, effective vaccines and treatments should offset some of the disadvantages.
Monday’s price move shows that investors remain bullish, shaking off recent disruptions and looking to an expected rebound in travel later this year.
United Airlines and American Airlines each gained more than 4%, while Delta gained 3.1%, JetBlue 2.7% and Southwest gained 2.3%.
Low-cost airlines such as Spirit and Alaska Airlines also saw their numbers increase by around 3%.