The news comes when U.S. carriers are burning $180 million in cash daily as passenger volumes remain down nearly 70% from year earlier levels due to the restrictions triggered by the pandemic.
Shares of Delta Air Lines shed about 7%, while those of American Airlines and United Airlines fell about 6%. Southwest Airlines dropped about 5% in premarket trading. The new strain, said to be up to 70% more transmissible than the original, has prompted Canada, Germany, Italy and the Netherlands to suspend flights from Britain, while France has also barred freight carriers.
Investors also shrugged off the $15 billion in new payroll assistance for U.S. airlines, expected to be finalised on Monday, as part of a new coronavirus aid.Reporting by Rachit Vats in Bengaluru; Editing by Sriraj Kalluvila