Shares of U.S. airlines tumbled in premarket trading on Monday as a new fast-spreading COVID-19 strain in Britain renewed fears of widespread travel bans, with many countries barring flights from the United Kingdom ahead of the peak holiday season.
FILE PHOTO: A Delta Air Lines Airbus A350-900 plane takes off from Sydney Airport in Sydney, Australia, October 28, 2020. REUTERS/Loren ElliottREUTERS: Shares of U.S. airlines tumbled in premarket trading on Monday as a new fast-spreading COVID-19 strain in Britain renewed fears of widespread travel bans, with many countries barring flights from the United Kingdom ahead of the peak holiday season.
The news comes when U.S. carriers are burning US$180 million in cash daily as passenger volumes remain down nearly 70per cent from year earlier levels due to the restrictions triggered by the pandemic.Shares of Delta Air Lines shed about 7per cent, while those of American Airlines and United Airlines fell about 6per cent. Southwest Airlines dropped about 5per cent in premarket trading.
The new strain, said to be up to 70per cent 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 US$15 billion in new payroll assistance for U.S. airlines, expected to be finalised on Monday, as part of a new coronavirus aid.