Airline stocks are the talk of Wall Street today after cancelling more than 7,000 flights over Memorial Day weekend. High flyers are down across the board today as investors show hesitance around the volatile industry.
As per FlightAware, a flight tracking website, airlines around the globe cancelled more than 1,500 flights on Monday, following 1,642 cancellations Sunday. In the United States alone roughly 400 flights were cancelled on Monday, with 2,400 delays.
Airlines cited weather, air traffic control, and Covid-19 cases among employees as the primary reasons behind the cancellations. Last week Delta (NYSE:DAL) announced it was cutting some flights over the weekend and through early August to improve its operational functions.
According to American Airlines (NASDAQ:AAL), thunderstorms in Miami were another major reason for its cancellations. This makes sense, as many U.S. flights pass through Florida on the way to their destinations. About 45% of JetBlue (NASDAQ:JBLU) and Southwest (NYSE:LUV) airline flights touch Florida.
American cancelled 119 flights on Monday, adding to the 74 cancelled flights Sunday. This represents roughly 2% of its total flights, however, about 11% of the airline’s trips were delayed Monday.
Airline Stocks Remain Touch and Go Amid Travel Volatility
Delta Air Lines was also affected by travel hiccups. Delta canceled roughly 700 flights over the long-weekend, a figure which includes 134 cancelled flights Monday, representing 4% of its scheduled flights.
The airline did state that 94% of passengers on Sunday were provided alternative flights. The new flights were provided to travelers within 10 hours of their stated departure time, according to Delta.
Meanwhile, JetBlue Airways may have arguably been the most impacted with flight conflicts. JetBlue delayed 30% of its flights Sunday, and 18% of its trips Monday. The airline did manage to contain its cancellations to just 1% Monday. JetBlue is another name planning on trimming its itineraries this summer. Last month, the airline announced cutting its summer schedule more than 10%.
This comes as in the face of a long-waited uptick in travel demand. In fact, the past weekend saw a roughly 22% increase from last year. But as airlines still deal with rising fuel costs, complications stemming from the Covid-19 pandemic, and crew member shortages, further disruptions may be a very possible reality.
Delta, United, and JetBlue are each down between 1% and 2% so far today, while American is down less than 1% at the time of writing.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
