Ready for the summer? Travel stocks rally amid eased covid restrictions measurements

Movers and Shakers wrote a column · Apr 21, 2022 03:19

Travel stocks have taken off lately as Covid-related restrictions are being lifted in many countries. Shares of U.S. major airlines jumped after a federal judge voided the national mask mandate for airplanes and other public transportations on Tuesday.

In the latest earnings reports, $Delta Air Lines (DAL.US)$ and $United Airlines (UAL.US)$ showed an optimistic forecast as airlines anticipate a bustling summer.

We are seeing a historic level of sales activity and booking volumes at levels higher than we've ever seen in our history."
--- Delta Chief Executive Ed Bastian said.

The demand environment is the strongest it's been in my 30 years in the industry. We're now seeing clear evidence that the second quarter will be a historic inflection point for our business."
--- United Chief Executive Scott Kirby said in a news release.

Meanwhile, $Morgan Stanley (MS.US)$ rates the airline industry Attractive.

[We will keeping a close eye on] developments related to the mask mandate and testing requirements, which we believe will likely drive another wave of pent-up demand being released once they are removed."
---Morgan Stanley airline analyst Ravi Shanker wrote in a research note Tuesday.

Besides, hotel and cruises stocks rebounded because of eased restrictions and recovery travel demand. Let's take a look.