News About Banking Industry

Airline, cruise, hotel stocks down in wake of Paris terror attacks

In the wake of the terror attacks that have rocked Paris and the world, stocks throughout the travel sector were down – even after news of a merger that will create the world’s largest hotel company. Airlines, hotels and major cruise lines all with service too, or properties in Europe, saw price drops of as much as 3% in mid-day trading Monday.Delta-Air-Lines

Delta (DAL) was down 2.41% to $47.81 per share; United(UAL) declined by 1.46% to $57.94 and American (AAL) dipped 2% to $42.58. Cruise lines also saw a drop. Carnival Corporation (CCL) saw a 2.64% share price drop to $50.22, while Royal Caribbean Cruises Ltd (RCL) was down 1.48% to $94.09. Norwegian Cruise Line Holdings (NCLH) dipped 2.63% to $53.75 a share.

Hotel investors were also cool, despite the announcement early Monday of Marriott’s $12.2 billion acquisition of Starwood. If that merger goes through, Starwood shareholders will see a value of $72.08 per Starwood share. Yet as of mid-day, the stock price of the company – which includes such brands as St. Regis, W Hotels, and Aloft – had dipped 6.27% to $70.29. And Marriott, whose 19 brands include Residence Inn, Courtyard, and The Ritz-Carlton, after a bounce in the morning, saw a 0.54% decline, to $72.35 per share.

Jim Corridore, an analyst with S&P Capital IQ said in an investors note that he didn’t expect the dip in airline share prices to last, and his outlook on the airline industry remained positive. “U.S. airline stocks are under pressure today in the wake of the Paris terror attacks,’’ he wrote. “We think that as long as these incidents do not continue, airline stocks will start to trade on fundamentals, rather than fear. We do not see a long term demand impact from the Paris events. With that in mind, we think demand remains strong and lower fuel expense is driving strong profitability and strong operating cash flows.”