Airlines stocks dropped Monday as more than two dozen nations restricted travel because of the highly contagious mutation of Covid-19 discovered in the U.K. and South Africa. British officials sounded the alarm over what they claimed was a quick-spreading strain of the virus after discovering it in the U.K. Several countries have banned flights from the U.K. or travelers who visited that country. On Sunday, the Canadian government announced that it would suspend passenger flights from the United Kingdom for 72 hours.
This ban just came ahead of the peak holiday season. As a result of the pandemic, U.S. carriers burn more than $180 million in cash daily, as passenger volumes are down roughly 70% from a year earlier.
As a result of the new strain, said to be 70% more transmissible than the original, several countries have suspended Britain’s flights.
American Airlines Group Inc. (NASDAQ:AAL) shares were trading down -2.48% at $16.10 at the time of writing on Monday.
American Airlines Group Inc. (NASDAQ:AAL) share price went from a low point around $8.25 to briefly over $30.78 in past 52 weeks, though shares have since pulled back to $16.10. AAL market cap has remained high, hitting $9.91B at the time of writing, giving it price-to-sales ratio of more than 0.
If we look at the recent analyst rating AAL, Deutsche Bank downgraded coverage on AAL shares with a Hold rating and a $11.36 price target, which implies room for -4.74% downside momentum this year.
Alaska Air Group Inc. (ALK) last closed at $50.22, in a 52-week range of $20.02 to $69.63. The company recently added more ‘sun and fun’ destinations from Anchorage. Analysts have a consensus price target of $54.87.
Azul S.A. (AZUL) stock drop by -4.49% to $21.46. On December 8, 2020, the company declared its preliminary traffic results for November 2020. The most recent rating by Raymond James, on December 10, 2020, is at a Mkt perform.
Delta Air Lines Inc. (NYSE:DAL) Shares headed falling, lower as much as -1.33%. The most recent rating by Deutsche Bank, on December 11, 2020, is at a Hold.
Gol Linhas Aereas Inteligentes S.A. (NYSE:GOL) fall -6.12% after losing more than -$0.61 on Monday after reporting that its subsidiary GOL Finance priced a private placement of US$200,000,000 (approximately R$1,018,000,000) aggregate principal amount of 8.00% Senior Secured Notes due 2026. GOL Finance Prices US$200 million of 8% Senior Secured Notes due 2026.
Hawaiian Holdings Inc. (HA) last closed at $18.02, in a 52-week range of $7.55 to $31.11. The company on December 16, 2020 published its inaugural Corporate Kuleana Report outlining progress advancing a host of environmental, social and governance (ESG) initiatives. Analysts have a consensus price target of $15.13.
JetBlue Airways Corporation (JBLU) stock drop by -0.77% to $14.24. The airline recently revealed a new seamless testing and verification procedure for customers traveling to Aruba as the airline, the Aruban government, CommonPass, and the airline’s at-home testing partner, Vault, set plans to work together to streamline travel. The most recent rating by JP Morgan, on December 16, 2020, is at an Underweight.
Southwest Airlines Co. (NYSE:LUV) Shares headed falling, lower as much as -0.50%. The most recent rating by Deutsche Bank, on December 11, 2020, is at a Hold.
Spirit Airlines Inc. (NYSE:SAVE) fall -1.97% after losing more than -$0.51 on Monday.
United Airlines Holdings Inc. (UAL) last closed at $44.06, in a 52-week range of $17.80 to $90.57. A Message From Scott Kirby and Brett Hart. Analysts have a consensus price target of $47.00.