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Travel Stocks Rise as Job Additions Point to Recovery

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06/05/2020 | 04:07pm EDT

By Dave Sebastian

 

Shares of travel-related companies traded higher Friday as the jobs report defied expectations and showed the economy added jobs in May.

States have begun reopening their economies in phases, and predictions for a sharp, V-shaped recovery looked prescient. Airlines are ramping up flights for the summer, casinos and theme parks have started reopening in several states and hotels -- as well as other businesses that take visitors -- have laid out sanitation and social-distancing plans.

The Dow Jones U.S. Travel & Leisure Index was up 3.5% to 1,105.78.

 

Here is a roundup of major market movers in the travel sector Friday afternoon:

 

AIRLINES: American Airlines Group Inc. on Thursday joined other carriers in restoring some flying that had been curtailed due to the pandemic, saying it would operate 55% of last year's domestic schedule in July. Delta Air Lines Inc. plans to fly twice as many domestic flights in July as it did in May, and United Airlines Holdings Inc. Airlines Co. is working on what it described as a measured ramp-up in flying activity for the rest of the year. United said it would bring back flights throughout the U.S. and Canada, including restoring 140 non-stop routes it had previously suspended. Shares of JetBlue Airways Corp., Spirit Airlines Inc. and Mesa Air Group Inc. also rose.

 

AEROSPACE COMPANIES: Plane makers such as Boeing Co. and Airbus SE also took off. Airbus said it delivered 24 jets in May, with no new order and zero cancellations for the month.

 

FLIGHT AMENITIES: Shares of in-flight entertainment company Global Eagle Entertainment Inc. soared, and so did those of in-flight Wi-Fi providers Gogo Inc. and ViaSat Inc.

 

CAR RENTALS, RIDESHARE: Car-rental companies benefit when there are more people at the airport. Shares of Hertz Global Holdings Inc., which has filed for bankruptcy, nearly doubled, while Avis Budget Group Inc. also rose. They have been competing with ride-sharing companies Uber Technologies Inc. and Lyft Inc.

 

HOTELS: Hotels have started reopening, with occupancy rates leveling off. Shares of major hotel companies Marriott International Inc., Hilton Worldwide Holdings Inc. and Hyatt Hotels Corp. rose. Midscale hotel operators like Choice Hotels International Inc. and Wyndham Hotels & Resorts Inc. also gained. They took less brunt amid the halt in travel due to less exposure to international tourism.

 

BOOKING AND TRAVEL-CONTENT COMPANIES: The expanded flight capacity for the summer is a boon for Sabre Corp., the travel-technology company that processes air bookings. Online-travel agencies Expedia Group Inc. and Booking Holdings Inc., whose advertising revenues plummeted, gained. Travel sites such as Tripadvisor Inc. and Trivago NV, as well as Chinese online-travel agency Trip.com Group Ltd., also picked up.

 

CASINOS: Las Vegas casinos are trying to bring tourists back, and the Strip is among the first bellwethers of consumers' willingness to venture out again. Properties in states like Missouri and Iowa have also reopened with socially distanced slot players. Among those gaining were Las Vegas Sands Corp., Wynn Resorts Ltd., MGM Resorts International and Caesars Entertainment Corp. Eldorado Resorts Inc. and Monarch Casino & Resort Inc. also rose.

 

CRUISES: Cruise forward bookings now point to recovery after an outbreak aboard Carnival Corp.'s Diamond Princess ship stamped cruise lines' reputation as petri dishes for the pathogen. Eight of Carnival's cruises are set to begin sailing Aug. 1, but sailings on its other units as well as of other cruise companies have been delayed to later in the year, partly due to Canada's extension of sailing restrictions. The U.S. Centers for Disease Control and Prevention's no-sail could be in place up to July 24, and it is working with cruise lines to develop health protocols. Shares of Carnival, Royal Caribbean Cruises Ltd. and Norwegian Cruise Line Holdings Ltd. rose.

 

THEME PARKS: Six Flags Entertainment Corp. reopened its Oklahoma theme park Friday, with visitors required to reserve spots beforehand. SeaWorld Entertainment Inc. is set to reopen parks in Tampa and Orlando, Fla., on June 11. Walt Disney Co. is targeting opening some Florida parks in July. Comcast Corp.'s Universal Orlando has also reopened.

The travel companies' resumption of operations could serve as a litmus test to the measures implemented to curb the disease's spread. Universal Orlando's caveat illustrates what is at stake: "Exposure to Covid-19 is an inherent risk in any public location where people are present; we cannot guarantee you will not be exposed during your visit."

 
AIRLINES                            Shares rose 
American Airlines Group Inc.        10.7% 
United Airlines Holdings Inc.       9.5% 
Delta Air Lines Inc.                6% 
Southwest Airlines Co.              0.7% 
JetBlue Airways Corp.               5.7% 
Mesa Air Group Inc.                 17.5% 
 
AEROSPACE COMPANIES 
Boeing Co.                          11.8% 
Airbus SE ADRs                      11.3% 
 
FLIGHT AMENITIES 
Global Eagle Entertainment Inc.     15% 
Gogo Inc.                           2% 
ViaSat Inc.                         2% 
 
CAR RENTALS, RIDESHARE 
Hertz Global Holdings Inc.          75% 
Avis Budget Group Inc.              10.6% 
Uber Technologies Inc.              2.4% 
Lyft Inc.                           8.2% 
 
HOTELS 
Marriott International Inc.         3.8% 
Hilton Worldwide Holdings Inc.      2% 
Hyatt Hotels Corp.                  4.2% 
Choice Hotels International Inc.    3.2% 
Wyndham Hotels & Resorts Inc.       3.9% 
 
BOOKING AND TRAVEL-CONTENT COMPANIES 
Sabre Corp.                         14.2% 
Expedia Group Inc.                  3.9% 
Booking Holdings Inc.               4.7% 
Tripadvisor Inc.                    19.1% 
Trip.com Group Ltd. ADRs            4% 
Trivago NV ADRs                     9.9% 
 
CASINOS 
Las Vegas Sands Corp.               2.2% 
Wynn Resorts Ltd.                   8.2% 
MGM Resorts International           1.8% 
Caesars Entertainment Corp.         0.7% 
Eldorado Resorts Inc.               3.2% 
Monarch Casino & Resort Inc.        2% 
 
CRUISES 
Carnival Corp.                      19.2% 
Royal Caribbean Cruises Ltd.        24.4% 
Norwegian Cruise Line Holdings Ltd. 16.8% 
 
THEME PARKS 
Six Flags Entertainment Corp.       1.6% 
SeaWorld Entertainment Inc.         0.2% 
Walt Disney Co.                     0.9% 
Comcast Corp.                       2.3% 
Cedar Fair LP                       4.7% 
 

Write to Dave Sebastian at dave.sebastian@wsj.com

 

Stocks mentioned in the article
ChangeLast1st jan.
AAR CORP. -1.00% 20.8 Delayed Quote.-53.88%
AIRBUS SE -1.17% 65.63 Real-time Quote.-49.70%
AMERICAN AIRLINES GROUP INC. -2.42% 12.5 Delayed Quote.-56.42%
AT HOME GROUP INC. 3.91% 6.64 Delayed Quote.20.73%
AVIS BUDGET GROUP, INC. 15.30% 25.92 Delayed Quote.-19.60%
BOEING COMPANY (THE) 0.27% 180.81 Delayed Quote.-44.50%
BOOKING HOLDINGS INC. 0.67% 1669.98 Delayed Quote.-18.69%
CAESARS ENTERTAINMENT CORPORATION 1.15% 12.3 Delayed Quote.-9.56%
CARNIVAL CORPORATION & PLC -2.93% 15.88 Delayed Quote.-68.76%
CARNIVAL PLC -2.29% 1002 Delayed Quote.-72.50%
CEDAR FAIR, L.P. 0.25% 28.26 Delayed Quote.-49.03%
CHOICE HOTELS INTERNATIONAL, INC. -0.17% 81.05 Delayed Quote.-21.64%
COMCAST CORPORATION -1.13% 39.25 Delayed Quote.-12.72%
DELTA AIR LINES, INC. 0.07% 27.72 Delayed Quote.-52.60%
ELDORADO RESORTS, INC. 0.83% 41.2 Delayed Quote.-30.92%
EXPEDIA GROUP, INC. 0.53% 84.89 Delayed Quote.-21.50%
GLOBAL EAGLE ENTERTAINMENT INC. 8.74% 4.48 Delayed Quote.-64.16%
GOGO INC. 1.31% 3.1 Delayed Quote.-51.56%
HERTZ GLOBAL HOLDINGS, INC. 2.04% 1.5 Delayed Quote.-90.48%
HILTON WORLDWIDE HOLDINGS INC. 0.70% 20.18 Delayed Quote.-41.32%
HILTON WORLDWIDE HOLDINGS INC. 0.11% 74.52 Delayed Quote.-32.81%
HYATT HOTELS CORPORATION 0.88% 51.59 Delayed Quote.-42.49%
JETBLUE AIRWAYS CORPORATION 0.00% 10.67 Delayed Quote.-43.00%
JUST GROUP PLC -4.49% 48.9 Delayed Quote.-38.10%
LAS VEGAS SANDS CORP. 2.89% 46.34 Delayed Quote.-32.88%
LETS HOLDINGS GROUP CO., LTD. -1.84% 11.22 End-of-day quote.85.76%
LINE CORPORATION 1.83% 5570 End-of-day quote.4.11%
LOOK HOLDINGS INCORPORATED -3.53% 684 End-of-day quote.-45.37%
LYFT, INC. -0.56% 31.82 Delayed Quote.-26.03%
MARRIOTT INTERNATIONAL., INC. 1.36% 87.8 Delayed Quote.-42.02%
MESA AIR GROUP, INC. -0.90% 3.3 Delayed Quote.-63.09%
MGM RESORTS INTERNATIONAL 0.54% 16.86 Delayed Quote.-49.32%
MONARCH CASINO & RESORT, INC. 1.33% 34.36 Delayed Quote.-29.23%
NORWEGIAN CRUISE LINE HOLDINGS LTD. -2.74% 15.97 Delayed Quote.-72.66%
RISE, INC. 6.90% 31 End-of-day quote.3.33%
ROYAL CARIBBEAN CRUISES LTD -2.60% 49.51 Delayed Quote.-62.92%
SABRE CORPORATION -2.77% 8.06 Delayed Quote.-64.08%
SEAWORLD ENTERTAINMENT, INC. -2.61% 15.29 Delayed Quote.-51.78%
SIX FLAGS ENTERTAINMENT CORPORATION -1.81% 19.51 Delayed Quote.-56.75%
SOUTHWEST AIRLINES 0.92% 34.12 Delayed Quote.-36.79%
SPIRIT AIRLINES, INC. -1.86% 17.4 Delayed Quote.-56.83%
THE GLOBAL LTD. 0.97% 209 End-of-day quote.-55.63%
THE NEW HOME COMPANY INC. 0.63% 3.2 Delayed Quote.-31.33%
TRIP.COM GROUP LIMITED 3.59% 26.56 Delayed Quote.-20.81%
TRIPADVISOR -0.60% 19.1 Delayed Quote.-37.13%
TRIVAGO N.V. 0.00% 1.94 Delayed Quote.-25.95%
UBER TECHNOLOGIES, INC. 0.82% 30.68 Delayed Quote.3.16%
UNITED AIRLINES HOLDINGS, INC. -0.90% 34.14 Delayed Quote.-61.24%
VIASAT, INC. -0.24% 36.68 Delayed Quote.-49.89%
WALT DISNEY COMPANY (THE) -0.73% 112.18 Delayed Quote.-22.44%
WILL GROUP, INC. 0.32% 636 End-of-day quote.-49.20%
WYNDHAM HOTELS & RESORTS, INC. 0.87% 43.86 Delayed Quote.-30.17%
WYNDHAM WORLDWIDE 0.87% 29.11 Delayed Quote.-43.68%
WYNN RESORTS 4.78% 77.32 Delayed Quote.-44.32%
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