Southwest Airlines wants investors to know: the Delta variant is having an impact, especially on the travel and leisure industry. The company’s earnings were a touch below what analysts expected.
Fortunately for most investors, they already expected some bad news. Investors sold airlines and other travel stocks as the Delta variant ramped up. In the last three months, the SonicShares Airlines, Hotels, and Cruise Lines ETF has tumbled 5.7%. Falling prices came even amidst a period of strength in travel figures. After all, TSA checkpoint travel numbers have risen steadily since the vaccine was approved. ðââïļ
However, yesterday’s report could add to investors’ concern. Southwest lowered its guidance for next quarter because some passengers are cancelling their flights. Last week, Frontier Airlines issued its own warning. Plenty of other companies (Disney included) are taking new precautions, too.Â
So why is everything messed up? Well, COVID’s Delta variant affects regions with low vaccination levels and no mask mandates, but Delta still represents a threat to vaccinated communities. More on that below.