Industry
Shares of U.S. airlines fell in pre-sale trading on Monday when a new, fast-spreading COVID-19 strain feared a ban on widespread travel, with many countries banning flights from the United Kingdom ahead of the main holiday season.
PHOTO FILE: A Delta Air Lines Airbus A350-900 plane will depart from Sydney Airport in Sydney, Australia, October 28, 2020. REUTERS / Loren Elliott
REUTERS: Shares of U.S. airlines fell in pre-sale trading on Monday as a new, rapidly spreading COVID-19 strain feared a ban on widespread travel, with many countries banning flights from the UK ahead of the holiday season.
The news comes as U.S. carriers are burning US $ 180 million in cash each day as passenger volumes remain down nearly 70 percent from a year earlier rates due to the restrictions induced by the pandemic.
Shares of Delta Air Lines rallied around 7per percent, while shares of American Airlines and United Airlines fell about 6per percent. Southwest Airlines fell about 5per percent in pre-sale trading.
The new snort, which is said to be up to 70 per cent more mobile than the original, has forced Canada, Germany, Italy and the Netherlands to suspend flights from Britain, while France has also banned freight carriers.
Investors also went down from US $ 15 billion in new payment support for U.S. airlines, which was scheduled for completion Monday, as part of new coronavirus support.
Shares of other U.S. travel companies were also lower Monday.
(Reporting by Rachit Vats in Bengaluru; Editing by Sriraj Kalluvila)