U.S. Airline Shares Hit After Second Ebola Scare
Published By : 16 Oct 2014 | Published By : QYRESEARCH
Fears of the spread of the deadly Ebola virus continues to adversely impact major industries in the U.S., the recent being airline services. Airline stocks took a massive hit and dropped yet again after reports that a second nurse from Texas with the Ebola virus had travelled on a U.S. flight.
The shares first tumbled on Monday due to similar concerns that the virus was spreading from West Africa. On Wednesday, United Continental Holdings Inc. shares fell 7.1% to US$40.12 during mid-day trading on the New York Stock Exchange. Shares of American Airlines Group dropped 6.25% to US$29.54, JetBlue Airways Corp shares slipped 3.8% at US$9.84, and Delta Air Lines Inc was down 4.5% at US31.30 in mid-day trading.
The first incidence of declining stocks occurred after U.S.’s first case of Ebola virus. Thomas Eric Duncan was diagnosed with the virus and died in Dallas on October 8. Last Sunday, the nurse who took care of Duncan was also diagnosed with Ebola. After this, on Wednesday, another nurse who was also involved in the care of Duncan tested positive for the virus and reportedly traveled by a U.S. airline flight on the day before she showed symptoms. The healthcare worker Amber Vinson flew from Cleveland, Ohio to Dallas by Frontier Airlines and arrived on Monday.
However, even while stocks of airlines have been tumbling, data revealed by travel companies has revealed that the holiday bookings are on the same level as last year. Analysts state that in the fourth quarter, U.S. airline shares could possibly make gains owing to cheaper fuel.