American Airlines Stock Plunges On New COVID-19 Variant In South Africa

A new type of coronavirus has been discovered in South Africa. The United Kingdom, the United States, and Israel have already stopped flights with several South African countries. Therefore, the stock market of all airlines and travel abruptly tanked lower by 7%. Furthermore, the worth of American Airlines demonstrates a negative tends to $18.16 by losing 6% from its previous close of $19.46. If we look at the graph for the last three years, then during the pandemic years, the price was $10.50, while now the market cap is 12 billion dollars.

In accordance, there is a possibility that countries will introduce other pandemic restrictions. This means that many countries may close their borders again, and a sharp decline in the number of travelers will hit airlines and travel companies hard again. The UK, Singapore, the EU, and Israel have already stopped flights with several African countries. Other governments may follow this example. A new variant of coronavirus, called B.1.1.529 Sars-Cov-2, was first identified in Botswana. It is believed to cause a surge in COVID cases in southern Africa recorded over the past week.