Per CNN Business, American Airlines Group (AAL - Free Report) has postponed the resumption of Dallas-Hong Kong flights from Jul 9 to Aug 5, following Hong Kong government’s mandatory coronavirus testing rules for airline crew members.
Last week, the Hong Kong government announced that crew members would be required to submit deep-throat saliva samples at the Hong Kong International Airport. The country, which was quick to control the spread of COVID-19, is currently witnessing a sudden rise in coronavirus cases, which prompted its government to tighten social-distancing norms, such as putting a cap on restaurant seating capacity and restricting large gatherings at clubs and bars.
In a statement, American Airlines, carrying a Zacks Rank #3 (Hold), said, “We've been making regular adjustments to our schedule to match demand, and we consider a range of factors including travel restrictions or entry requirements in making network decisions.”
Hong Kong’s strict mandates for airline crew members come at a time when U.S. airlines are seeing the uptick in demand (from the lows in March and April) fade away amid a surge in coronavirus cases in the nation and new quarantine rules. Earlier in the month, United Airlines (UAL - Free Report) , carrying a Zacks Rank #3, announced certain adjustments to its August flying schedule due to reduced demand following last month’s announcement of new quarantine rules in New York, New Jersey and Connecticut. The carrier now expects its August schedule to be 35% instead of 40% of the year-ago level it anticipated previously.
Amid a spike in COVID-19 cases in some parts of United States, Delta Air Lines (DAL - Free Report) , carrying a Zacks Rank #3, has slowed down its capacity-expansion plans beyond August through the rest of 2020.
A Key Pick
A better-ranked stock in the airline space is Corporacion America Airports SA (CAAP - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Corporacion America Airports have rallied more than 26% in the past three months.
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