Why Are Airline Stocks Getting Hurt By Zika Pandemic Fears?

While the Zika Virus outbreak in South America may seem isolated from the U.S. economy to this point, consumer fears have already begun impacting the airline industry. In a new report, Raymond James analyst Savanthi Syth takes a look at which airlines could be impacted the most and how much Zika could impact their bottom lines.

Most major U.S. airlines have already begun offering refunds or waived ticket change fees for customers who had booked flights to affected destinations. “We believe such actions are good governance practices but so far appear to be immaterial (from a purely dollars and cents standpoint) to earnings,” Syth explains.

Related Link: Stocks To Play In A Zika Virus Pandemic

JetBlue Airways Corporation (NASDAQ: JBLU) specifically noted on its Q4 earnings call that they had not seen a measurable impact on bookings due to Zika.

In terms of exposure to the affected regions, American Airlines Group Inc (NASDAQ: AAL) and United Continental Holdings Inc (NYSE: UAL) are the most exposed U.S.-listed public airlines, while Virgin America Inc (NASDAQ: VA) has zero exposure.

Disclosure: the author holds no position in the stocks mentioned.