Major airline stocks like United (UAL - Free Report) , Delta (DAL - Free Report) , and American (AAL - Free Report) fell by as much as 10% during Monday’s trading session; the US Global Jets ETF (JETS - Free Report) took a big hit as well.
Surging oil prices due to Russia’s invasion of Ukraine have caused investors to flee travel-related stocks. Oil prices climbed to their highest level in over a decade yesterday, with prices continuing to spike on Tuesday as the Biden administration announced a U.S. ban on Russian oil imports. Airliners’ fuel costs are now likely to increase, and companies in the industry may be forced to lower Q1 profit and revenue expectations.
UAL, DAL & AAL, along with smaller players like JetBlue (JBLU - Free Report) and Southwest (LUV - Free Report) , are still trying to recover from the coronavirus pandemic. Airlines anticipated that the decline in Omicron cases, warmer weather, and the lifting of restrictions would lead to renewed demand for air travel
While shares of airline stocks rebounded Tuesday, the geopolitical uncertainty, coupled with inflation and supple chain worries, could lead to even more volatility for airlines for the time being.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Major airline stocks like United (UAL - Free Report) , Delta (DAL - Free Report) , and American (AAL - Free Report) fell by as much as 10% during Monday’s trading session; the US Global Jets ETF (JETS - Free Report) took a big hit as well.
Surging oil prices due to Russia’s invasion of Ukraine have caused investors to flee travel-related stocks. Oil prices climbed to their highest level in over a decade yesterday, with prices continuing to spike on Tuesday as the Biden administration announced a U.S. ban on Russian oil imports. Airliners’ fuel costs are now likely to increase, and companies in the industry may be forced to lower Q1 profit and revenue expectations.
UAL, DAL & AAL, along with smaller players like JetBlue (JBLU - Free Report) and Southwest (LUV - Free Report) , are still trying to recover from the coronavirus pandemic. Airlines anticipated that the decline in Omicron cases, warmer weather, and the lifting of restrictions would lead to renewed demand for air travel
While shares of airline stocks rebounded Tuesday, the geopolitical uncertainty, coupled with inflation and supple chain worries, could lead to even more volatility for airlines for the time being.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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