Travel stocks shake off jitters

Casino operator Las Vegas Sands Corp. and online travel booking platform Expedia Group Inc. posted the biggest S&P 500 gains on Monday as concerns over an imminent invasion of the Ukraine eased and COVID-19 continued its retreat. Airlines, however, were not able to hold on to early gains, weighed down by rising oil.

Most theme park and casino stocks held on to Monday’s gain even as the S&P 500 Index slipped 0.4 per cent, failing to hold on to brief advances. Many travel stocks are looking to shake off a two-year slide as the March anniversary of the U.S. lockdown approaches.

The stocks began climbing after Russia’s foreign minister told President Vladimir Putin Russia should continue talks with the U.S. and its allies. The promise of COVID-19 antiviral pills and the improving outlook for

REBOUNDING DEMAND COULD HELP CARRIERS OFFSET COSTS.

survival may also be putting potential travellers at ease.

Airlines and cruise ship operators fared less well, ending Monday lower after crude oil hit US$95 a barrel. Still, younger adults are most interested in travel right now with Latin American residents the most keen to take to the skies, a survey from Citigroup Inc. showed. For airlines, “rebounding demand could help carriers offset costs, such as oil price pressure,” wrote Citi analyst Stephen Trent.

United Airlines Holdings Inc., Jetblue Airways Corp. and Delta Air Lines Inc. and American Airlines Group Inc. all slumped, though only American lost more than one per cent.

Airlines, travel and leisure stocks have had a good 2022 so far. But investors should not assume things will be calm from here. Expedia rose 2.6 per cent on Monday paring back from a 5.8-per-cent jump. “COVID is not gone — and it is not entirely clear if elements of the market might panic about the next Greek letter-named variant several months from now,” Trent said.