For Immediate Release
Chicago, IL - November 18, 2015 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Deutsche Lufthansa AG ( DLAKY ), American Airlines Group Inc. ( AAL ), United Continental Holdings Inc. ( UAL ) and Delta Air Lines Inc. ( DAL ).
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Here are highlights from Tuesday's Analyst Blog:
U.S. Airlines Dip as Terror Strikes Paris
The Paris attack has shamed humanity again, with its effects rippling far and wide. The shameful act of brutality has cast a shadow on the various industries worldwide, and the tourism and other related sectors were no exception.
Often referred to as the "city of lights," Paris has been plunged into darkness following the terror act. The city attracts millions of travelers every year and as per MasterCard Global Destinations Cities Index projection, it secured the third position with 16.06 million travelers paying it a visit in 2015.
However, the massacre will have a widespread effect, affecting travel plans to Paris as well as the neighboring cities in Europe during the upcoming holiday season, thereby hurting profits for most carriers.
Airline stocks are vulnerable to such assaults as government-issued emergency periods cause disruption in flight services as is evident from the cancellation of most Paris-bound flights post the Friday attack.
Shares of Air France-KLM SA was affected the most with a 5.7% decline followed by a 2.1% drop in Deutsche Lufthansa Aktiengesellschaft ( DLAKY ) shares.
Impact on U.S. Airlines
Following the terror strike, shares of three dominant U.S. carriers, namely, American Airlines Group Inc. ( AAL ), United Continental Holdings Inc. ( UAL ) and Delta Air Lines Inc. ( DAL ), all of which enjoy a strong presence in Europe, witnessed 1.4%, 1.2% and 2.2% decline in stock prices. Even the U.S. Global Jets exchange-traded fund (JETS) declined 2%.
Delta Air Lines was dealt a heavy blow recording the maximum decline among these carriers because of its collaboration with Air France-KLM and Alitalia over transatlantic flights.
Conclusion
The 9/11 terror attack had been another devastating event for the U.S. airline industry. As per IATA, overall U.S. airline revenues in 2002 fell 17.7% from the 2001 levels. Further, global airline revenues declined by 6.7% in the same period. Both American Airlines and United Airlines witnessed a respective decline in stock prices of 39% and 42% on Sep 17, 2001.
Though the 9/11 attack has been the most severe one, assaults like the Madrid train bombings in 2004 and London terror act in 2005 had short-lived effects on overall airline industry. Such incidents have disrupted travel plans in the past for a short period and will likely affect flight services in Paris and the neighboring regions this time as well.
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LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report
AMER AIRLINES (AAL): Free Stock Analysis Report
UNITED CONT HLD (UAL): Free Stock Analysis Report
DELTA AIR LINES (DAL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
