Delta Airlines, Marks & Spencer surprise winners amid omicron (2024)

Delta Airlines, Marks & Spencer surprise winners amid omicron (1)



14 Jan 2022, 02:55

Despite evidence that the new Omicron Covid-19 variant is a comparatively milder form of the virus, countries keep imposing curbs on businesses to deal with the surge and relieve pressure on health services.

In the early days of 2022 Hong Kong closed indoor venues, such as bars, eliminated large-scale events and halted flights from eight countries, including the UK, US and Australia. Elsewhere, the Ontario province of Canada closed schools, moved to remote learning and told retailers to open at only 50% capacity.

In Germany there have been discussions about imposing tough new restrictions, such as making people show proof of a booster jab before being allowed to enter cafes or bars. In South Korea there have been restrictions on opening times for bars and even the number of fully vaccinated people who can get together at one time. In New South Wales, Australia, even singing and dancing in clubs and bars have been banned.

In Peru there is a curfew in place between 11pm to 5am, and capacity limits have been tightened in shopping centres, banks and restaurants.

Last week the World Health Organization reported a record 9.5 million COVID-19 cases, a 71% increase from the previous seven days.

Stocks Impact

The resulting impact on business is leading to a number of surprising Omicron stock winners and losers.

Casting minds back to the middle of December, there were real fears that the markets would be walloped by Omicron.

“The rapid spread ofOmicronfinally reaches panic mode,” saidRuss Mould, investment director at AJ Bell, in a note on 20 December. “Tighter restrictions across parts of Europe and fears that we could see a circuit breaker in the UK have put a chill in the air for investors. A lot of people will have been sat indoors over the weekend, watching speculation grow on the news and across social media networks that freedom of movement could be curbed once again.”

The smart money was on the pharma firms that manufactured the COVID-19 vaccine to step up to the plate with a booster campaign and see their share price soar. Indeed, the likes of Pfizer [PFE] and Moderna [MRNA] are already looking at setting up trials for Omicron-specific vaccine shots that could be available later this year.

However, despite the arrival of Omicron and the expectations that there could be a need for annual booster shots, the share prices of both Pfizer and Moderna have struggled in recent weeks. Moderna share price is down 21% since mid-December, with Pfizer shares are down 3.5% over the same period.

This could be because much of the COVID-19 upside has already been priced into these stocks, and that the relative mildness of the omicron variant — which became clearer over the Christmas and new year period — could be a sign that the pandemic is coming to an end.

Zoom Gloom

That view may also have impacted video technology group Zoom [ZM], which had a stellar lockdown in the early days of the pandemic because of remote working. However, despite countries such as the Netherlands and the UK issuing guidance to people to work from home if possible during lockdown, Zoom shares have dropped 4% since mid-December.

Amazon [AMZN], the ecommerce giant, which benefited from so many people shopping online in lockdown, has dropped 4.5% since mid-December with online delivery firm Deliveroo [ROO.L] down 11%.

Surprise Winners

Conversely some stocks, which had expected to struggle, have performed well. Delta Airlines [DAL] share price is up 11% since mid-December, with German-based travel group Tui [TUI1.DE] up 24%. Delta even issued a statement saying its flight plans were not disrupted as a result of the omicron spread taking it even higher in its category.

InterContinental Hotels Group [IHG] has seen its shares soar 13% over the same timeline, with retailers such as Target [TGT] up 4% and Marks & Spencer [MAKSY] up 17%.

Instead of Omicron, the main issue impacting stocks in the early part of 2022 is inflation and interest rates.

“There are expectations that the US Federal Reserve might go further and faster on rates if, as the market now seems to expect, the US economy shrugs offOmicronrapidly,” said Mould in a January 5 note.

Time moves quickly in the markets. Politicians might be imposing more curbs, but more forward-looking markets are not seeing Omicron in quite the same perilous way.

Disclaimer Past performance is not a reliable indicator of future results.

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Delta Airlines, Marks & Spencer surprise winners amid omicron (2024)


Why choose Delta Airlines? ›

Reliability. One area that Delta particularly excels at is its on-time performance. According to OAG, a travel data provider, Delta ranks second on the North American regional list for flight punctuality. Delta outranks third place Alaska and falls just below first place Hawaiian.

Is Delta Airlines successful? ›

Delta is consistently recognized for excellence in workplace culture, customer experience, operational performance and more. The airline continues to earn accolades, with other recent recognition including: Earning a spot on Fast Company's list of the Most Innovative Companies for the fifth time in seven years.

Why is Delta so much better than American? ›

Delta boasts a higher reliability score and superior onboard experience. The complimentary messaging and in-seat screens give Delta an edge over American Airlines.

Who is Delta's biggest competitor? ›

Delta Air Lines (DAL) competes with United Airlines Holdings, Southwest Airlines, and American Airlines Group for domestic and international airline travel business in the United States.

What was the old name of Delta Air Lines? ›

1928: C.E. Woolman, the principal founder of what would become Delta Air Lines, leads movement to buy Huff Daland Dusters. Renamed Delta Air Service for the Mississippi Delta region it served, the new airline is incorporated on Dec. 3, 1928.

What is the best airline in the US? ›

Alaska Airlines is WalletHub's No.

1 from 2017 to 2019 and again in 2021. In WalletHub's ranking, Alaska was also the third-most reliable and comfortable airline and the fourth-most affordable airline. Alaska Airlines ranked as the best U.S. airline, according to a recent WalletHub report.

What is Delta's debt in 2024? ›

Total debt on the balance sheet as of March 2024 : $26.30 B

According to Delta Air Lines's latest financial reports the company's total debt is $26.30 B. A company's total debt is the sum of all current and non-current debts.

What is special about Delta? ›

Delta has been named the World's Most Admired Airline by Fortune , with the company ranking No. 1 across the board in the industry for values including innovation and people management. Delta also rated higher than any other airline on the overall list of Most Admired Companies, climbing to No. 12 this year.

Why is Delta one of the best airlines? ›

They have received the fewest complaints among all U.S. airlines, as tracked by the Transportation Department. This is no small feat in an industry often plagued by customer grievances. It reflects Delta's dedication to passenger satisfaction and their ability to deliver a seamless travel experience.

Why do you want to work for Delta answers? ›

Professional Tone:-

I believe that working at would allow me to use my skills and knowledge to help others plan their travel itineraries and have a positive impact on their overall travel experience.

What are Delta air lines known for? ›

The United States' oldest operating airline and the seventh-oldest operating worldwide, Delta along with its subsidiaries and regional affiliates, including Delta Connection, operates over 5,400 flights daily and serves 325 destinations in 52 countries on six continents.


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