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Travel-related stocks slide on Brussels attacks

Tuesday, March 22, 2016 - 01:23

Shares of airlines, cruise lines, and travel website operators fell on Tuesday, following the deadly attacks in Brussels. Leah Duncan reports

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Deadly attacks at Brussels' main international airport, and a rush-hour metro station, triggered a selloff in travel-related stocks on Tuesday. American Airlines and Delta fell two percent at one point, both airlines announcing plans to cancel flights to Belgium's capital city after the fatal blasts. For Delta, this latest attack could mean another hit to demand. The airline said, it had seen less demand from corporate clients for international travel after the bombings in Paris. Tuna Amobi of S&P Global Market Intelligence also sees unfavorable effects for travel website operators Expedia, Priceline and TripAdvisor. (SOUNDBITE) TUNA AMOBI, EQUITY ANALYST, S&P GLOBAL MARKET INTELLIGENCE, (ENGLISH) SAYING: "Well, I think, it's definitely going to have a negative impact when those companies report Q1 results. Simply for the fact that those companies have a significant amount of exposure, particularly in Europe. We saw what happened last November after the Paris attacks, and when they reported Q4, the revenue growth and room per night growth, for those companies were affected negatively to various degrees. So, that is what we are expecting to happen again this time." Shares of hotels and cruise lines like Carnival and Royal Caribbean also took a hit. Sheraton and Westin hotels operator Starwood said, all of its hotels in Brussels were on lockdown along with the rest of the city.

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Travel-related stocks slide on Brussels attacks

Tuesday, March 22, 2016 - 01:23