Travel Stocks Drop As Oil Soars And Ukraine Conflict Continues
U.S. travel industry stocks plunged Monday over investor worries about surging oil prices and concerns about how Russia's ongoing invasion of Ukraine could impact European travel plans.
In the airline sector, the US Global Jets fund dropped 11.1%. United's stock took the biggest dive among the four largest airlines, declining 15%. Delta stock was close behind, losing 12.8% of its value. American was down 12% and Southwest was down 8.6%.
In the cruise sector, Norwegian Cruise Line Holdings was down 11.6%. Carnival Corp. stock ended the day down 9.9%. Royal Caribbean Group was down 9%.
The price drops extended to large hotel companies as well. Hyatt was down 9.3%. Marriott International ended Monday down 7%. Hilton was off 6.2%. InterContinental Hotels Group stock lost 4.8% of its value.
In the rental car sector, Avis stock sank 7.1%. Hertz was down 5.1%.
Travel sector declines stood out even on an overall ugly day for the markets. The Dow Jones dropped 797 points, or 2.4% Monday, while the S&P 500 was off 3% and the Nasdaq Composite slumped 3.6%.
Investors' negative sentiment toward the travel sector came after crude oil prices reached as high as $130 per barrel in overnight trading for the first time since 2008. Prices slid through the day Monday. U.S. crude oil was trading at $120 per barrel shortly before 5 p.m. Eastern.
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