© Reuters. 4 Airline Stocks to Avoid as a New Covid-19 Variant Spreads
As another deadly COVID-19 variant begins threatening the global population—with the specter of renewed travel restrictions again rearing its ugly head—we think it could be wise to avoid airline stocks like Delta Air Lines (NYSE:), Ryanair Holdings (NASDAQ:), United Airlines Holdings (NASDAQ:), and Azul (AZUL) for the time being. Let’s discuss.The travel industry seemed just a few days ago to be on the cusp of renewal, with the Transportation Security Administration (TSA) screening nearly 2.5 million people during the Thanksgiving season. The TSA’s screening number was the highest since February 15, 2020. However, airlines are now scrambling to navigate a fast-degrading travel outlook amid deep concerns over the COVID-19 omicron variant.
In addition, the Biden administration has plans to restrict travel from South Africa and seven other countries for non-U.S. citizens. This is expected to cause negative repercussions aplenty in the coming months.
So, we think it could thus be wise to avoid airline stocks Delta Air Lines, Inc. (DAL), Ryanair Holdings plc (RYAAY), United Airlines Holdings, Inc. (UAL), and Azul S.A. (AZUL) for now.
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