Shares of airline stocks struggled Tuesday as the omicron variant revived investors' concern that the travel sector could be among the worst-hit industries.
Moderna Chief Executive Stéphane Bancel also warned on Tuesday that current vaccines will be far less effective against the omicron strain.
Airline stocks are also lower amid a broader market selloff.
At last check shares of Delta Air Lines (DAL) - Get Delta Air Lines, Inc. Report fell 1.2%, Southwest (LUV) - Get Southwest Airlines Co. Report dropped 1.6%, United Airlines (UAL) - Get United Airlines Holdings, Inc. Report traded 2% lower and American Airlines (AAL) - Get American Airlines Group, Inc. Report stock tumbled 2.3%.
Shares of ride-sharing apps Uber and Lyft fell 5% and 4.3% respectively on fears of potential lockdowns due to omicron.
Bancel also said that drugmakers would take months to manufacture new variant-specific vaccines at scale.
With new cases discovered in the U.K., Europe, Africa and Asia, governments around the world have imposed travel restrictions, starting Monday, on seven African countries in a bid to control the spread of the variant, which originated in Johannesburg.
The World Health Organization has named omicron a "variant of concern."
"If you have a selloff on the ride-sharing stocks, the travel stocks, that is probably a buying opportunity," EvercoreISI tech analyst Mark Mahaney told Yahoo Finance.
"I find it hard to believe we will have a repeat of the stocks we had which were massive last March, last April and a year and a half ago."