After the coronavirus pandemic, many industries have fallen as far and as fast as tourism. The crisis hit tourism, including hotel businesses, cruise businesses, airway companies and many more. Due to tight governmental restriction it was not allowed to travel making the losses more difficult.
USA travel industry became among the hardest hit. The U.S. Travel Association projects a loss of 4.6 million jobs through May.
But recently FDA announced on 23rd of August an update on coronavirus treatment and new vaccines. As a result, majority travel stock rose significantly, such as airlines stocks, cruise operators, and hotels.
The announcement was released by the U.S. Food and Drug Administration. According to official FDA reports they issued an emergency use authorization (EUA) for investigational convalescent plasma for the treatment of COVID-19 in hospitalized patients as part of the agency’s ongoing efforts to fight COVID-19. Based on scientific evidence available, this product may be effective in treating COVID-19 and that the known and potential benefits of the product outweigh the known and potential risks of the product.
“The FDA’s emergency authorization for convalescent plasma is a milestone achievement in President Trump’s efforts to save lives from COVID-19,” said Secretary Azar.
Shares of Airlines and Cruise Operators Increase
During pandemic cruise companies have lost $750 million in revenue since January, according to reports. Shares of the big players in the market—Royal Caribbean, Carnival, and Norwegian—have dropped by 60 to 70 percent. Another big disadvantage of being a cruise company in USA is that unlike the airlines and hotels, cruise companies were net eligible for the $500 billion in aid because they don’t count as American enterprises and major companies locate their primary headquarters overseas.
Following FDA announcement, United Airlines and Carnival Corp increased over 8%.
Delta Air Lines Inc (NYSE: DAL) announced to add about 50 international flights in 2020 and 2021.
American Airlines Group Inc (NASDAQ: AAL) stock increased 6.67%.
Similarly, shares of Southwest Airlines Co (NYSE: LUV) jumped over 8%.
Hotel shares increase
Hilton Worldwide Holdings Inc (NYSE: HLT) suffered from the coronavirus pandemic a lot showing a decline over 20%. Now, HLT jumped after the FDA announcement. Their stock grew over 5% in the last five days.
Furthermore, stocks of Marriott International and Hyatt Hotels are also shown an increase
Stephen M. Hahn, M.D., FDA Commissioner:
“I am committed to releasing safe and potentially helpful treatments for COVID-19 as quickly as possible in order to save lives. We’re encouraged by the early promising data that we’ve seen about convalescent plasma. The data from studies conducted this year shows that plasma from patients who’ve recovered from COVID-19 has the potential to help treat those who are suffering from the effects of getting this terrible virus,” said Dr. Hahn.
What do you think about new vaccine against COVID-19? Share your opinion in the comments below! I will be happy to answer your questions or submit your project to my team at Astorts Group for further evaluation.
Alessandro Rocco Pietrocola is an entrepreneur and investor based in London and operating mainly in Europe, Asia and Oceania with main focus on UK, Baltic Countries, Russia, China, Hong Kong, Malaysia, Singapore, Middle East and New Zealand as area of interest! At the moment is the CEO of Astorts Group. He is an UK FCA (Financial Conduct Authority) Approved Person and is has great experience as director of regulated companies. He uses to dedicate part of his life to inspire others and help them achieve the most out of their life. Since he was 20, he had successfully founded and managed several companies operating in the field of management consulting, wealth management and fintech. He loves travelling, he is a cigars lover, an amateur golfer and a dapper man.