Shares of airlines and travel platforms dropped on Monday as a large winter storm swept through the U.S. Northeast, disrupting operations and prompting thousands of canceled flights. Market moves reflected investor reaction to the operational paralysis affecting major airport hubs and travel booking businesses.
Market moves
Among travel and lodging platforms, Booking Holdings posted a 6.8% decline and Airbnb shares fell 6.0%. Major airlines recorded declines as well: American Airlines down 4.5%, United Airlines down 4.9%, Delta Air Lines off 3.6%, JetBlue Airways down 3.7%, and Southwest Airlines slid 2.9%.
Operational impact
The National Weather Service issued blizzard warnings across the Northeast on Monday as the storm produced heavy snowfall and strong winds. Forecasters cautioned that travel conditions would be extremely hazardous in the hardest-hit areas, and some local authorities implemented travel restrictions in response.
Flight tracking service FlightAware reported that more than 10,000 flights had been canceled through Tuesday. Flight operations were described as essentially suspended from Philadelphia north to Boston, with the bulk of cancellations concentrated at major hubs in Boston, New York and Philadelphia. Airports in Baltimore and Ronald Reagan Washington National Airport in Virginia also experienced a significant number of canceled flights.
Wider disruptions
The storm’s effects extended beyond air travel. Widespread power outages were reported, leaving more than half a million customers without electricity across Massachusetts, New Jersey, Delaware and Rhode Island. Those outages compounded challenges for affected communities and travel infrastructure.
Summary perspective
The market selloff in travel-related equities on Monday correlated with the immediate operational disruptions caused by the storm. The combination of suspended flight operations across a core Northeast corridor, thousands of flight cancellations through Tuesday, blizzard warnings and substantial utility outages created a rapid and broad-reaching disturbance to passenger travel and related services.
Context and limitations
All figures and descriptions above reflect reporting and tracking data available through the period in question. The account does not speculate on subsequent developments beyond the stated cancellations, stock moves and reported outages.