Travel industry exchange traded funds led the market rebound on Tuesday after the Covid-19 Delta variant dealt a blow to the leisure and entertainment sectors.
Cruise liners and air travel stocks took a blow Monday after an uptick in Covid-19 cases fueled concerns that the more infectious Delta variant could upend the economic recovery and weigh on the sectors most closely tied to loosened post-pandemic restrictions.
Furthermore, cruise stocks were also weakened Monday after an appeals court handed down a decision that will temporarily maintain pandemic restrictions on the industry, CNBC reported.
Carnival Corp (CCL) was among the outperformers on Tuesday after the world’s biggest cruise operator stated that 75% of its fleet would return to full service by the end of the year, The Street reports.
“With strong ongoing demand for cruising, we look forward to serving our guests with additional ships announced across eight of our brands and nearly three-quarters of our fleet capacity returning by the end of this year, marking an important milestone for our company and all those who rely on the strong economic impacts generated by the global cruise industry,” said COO Roger Frizzell.
Overall travel demand has increased since the spring. Delta Air Lines and American Airlines last week provided upbeat outlooks based to a jump in bookings. Additionally, the Transportation Security Administration screened about 2.2 million people at U.S. airports on Sunday, the most since before the pandemic crushed air travel, according to the Associated Press.
While domestic flights are rebounding, airlines remain frustrated that restrictions on international flights haven’t been rolled back as quickly. However, coronavirus infections have spiked, and the World Health Organization warned that the Delta variant is contributed to higher cases and deaths from Covid-19 worldwide after a period of decline, which could further delay normal travel.
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