Airline and cruise stocks dropped Monday after the European Union agreed to reinstate travel restrictions on U.S. visitors as the Delta variant fuels a fresh surge in COVID-19 infections.
European Union governments agreed on Monday to remove the United States and five other countries from the EU's safe travel list, Reuters reported.
The daily average for hospitalized COVID-19 patients in the country is now more than 100,000 over the last week, similar to the winter peak last year.
The U.S. is averaging closer to 125,000 new coronavirus infections a day.
Since July 1, there has been a 700% increase in the week-over-week average of COVID-19 infections in the United States, the Centers for Disease Control and Prevention said on Friday.
The 27-nation bloc had lifted travel restrictions in June.
Americans traveling to member nations might be be subject to measures such as testing, quarantine upon arrival and a halt to all non-essential travel.
The EU recommendation is non-binding, however, and member states retain control over their own border restrictions vis-a-vis COVID-19.
Shares of Delta Air Lines (DAL) - Get Delta Air Lines, Inc. Report on Monday fell 3.5% at last check, Southwest Airlines (LUV) - Get Southwest Airlines Co. Report dropped 3.1% and American Airlines (AAL) - Get American Airlines Group, Inc. Report shares slipped 3.4%.
Shares of Carnival (CCL) - Get Carnival Corporation Report retreated 2.7%, Royal Caribbean (RCL) - Get Royal Caribbean Cruises Ltd. Report fell 1.4% and Norwegian Cruise Line (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report shares traded 2.6% lower at last check.
The EU also added Israel, Kosovo, Lebanon, Montenegro, and North Macedonia to its list of countries whose visitors will likely face stringent travel restrictions and checks based on the coronavirus infection rates in their region.