Trump tariffs lead to sweeping losses with travel and leisure stocks
Mar. 04, 2025 11:04 AM ET
By: Clark Schultz, SA News Editor
Travel and leisure stocks slumped on Tuesday as the reality of President Trump's implementation of new tariffs on Canada, Mexico, and China drove up fears of a full-blown trade war. The tariffs and geopolitical tensions have created uncertainties about inflation, business sentiment, and the overall economy, which can negatively impact how investors view the travel and leisure industries.
Analysts have warned that there is already consumer pullback from discretionary spending in 2025, especially from potential customers in international markets. The leisure and travel sectors are especially suspectible to tariff sell-offs because there are no long-term earnings benefits from a protracted battle of tariffs on goods.
Airline stocks led the decline on Tuesday, including downward swings for JetBlue Airways ( JBLU) -8.3%, Allegiant Travel ( ALGT) -7.8%, Frontier Group ( ULCC) -7.3%, Delta Air Lines ( DAL) -6.8%, United Airlines ( UAL) -6.3%, Alaska Air Group ( ALK) -6.0%, and Skywest ( SKYW) -5.8%.
Leisure stocks Marriott International ( MAR) -3.3%, Six Flags Entertainment (SIX) -5.6%, Soho House ( SHCO) -5.5%, and United Parks & Resorts ( PRKS) -4.0% were also notably lower.
Casino stocks Caesars Entertainment ( CZR) -5.5%, PENN Entertainment ( PENN) -5.2%, and MGM Resorts ( MGM) -3.5% were all down more than broad market averages.
Timeshare stocks Hilton Grand Vacations ( HGV) -4.8% and Marriott Vacations Worldwide ( VAC) -3.8% also slumped in morning trading.
Expedia ( EXPE), Airbnb ( ABNB), and Booking Holdings ( BKNG) were all down more than the broad market. |
