Travel Stocks Hard Hit as Recession Fears Take Hold
2022.06.16 21:50
By Liz Moyer
Investing.com — Recession worries are causing a broad pullback in stocks on Thursday, particularly in leisure and travel names.
Despite optimistic outlooks for a travel recovery this summer, the fear of an economic slowdown may force consumers to change their plans and stick closer to home.
Cruise operators have been hard-hit in Thursday’s trading. Carnival Corporation (NYSE:CCL) shares are down 9.6%, while shares of Royal Caribbean Cruises Ltd (NYSE:RCL) and Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) are down 10% each. Shares of airlines are also not immune. American Airlines Group (NASDAQ:AAL)stock fell 9%, and United Airlines Holdings Inc (NASDAQ:UAL) fell 8%.
Travel search sites are also falling, with Booking Holdings Inc (NASDAQ:BKNG) stock down 6.6% and Expedia Inc (NASDAQ:EXPE) shares down 7%.
Hopes lifted over the weekend that tourism would flourish after the U.S. dropped its requirement that international travelers test negative for Covid-19 before boarding a flight for the U.S. The Transportation Security Administration screened 2.2 million people passing through airport checkpoints on Wednesday, up from 1.8 million on the same day last year but still down from 2.5 million in 2019.
But high gasoline prices and soaring prices for plane tickets and hotel rooms could be dampening demand.
Even casino operators are falling. Shares of Wynn Resorts Limited (NASDAQ:WYNN) were down 7.7%, while MGM Resorts International (NYSE:MGM) shares fell 8%. The S&P 500 was down 3.6% on Thursday.
