The United States plans to loosen restrictions for international visitors who are vaccinated against Covid-19, the White House reported today. The new rules will apply to citizens from the European Union, Great Britain, China and Brazil. Travelers who wish to visit the US will need to show proof of full vaccination and have a negative test within 72 hours of travel. The changes are expected to enter into force in November. The decision had been awaited for a long time. Despite the fact that the EU and the UK eased travel restrictions some time ago, US authorities decided to maintain the existing restrictions.
Airline shares gained right after the announcement. One such company is American Airlines (AAL.US) shares rose by around 2% at one point. Some of the gains have already been erased, but the company's stock continues to move despite the broad market sell-off. The US decision may affect numerous companies from the travel industry - in addition to airlines, these may also include restaurant chains and hotels.
American Airlines (AAL.US) has recently bounced off the $ 18.30 level which could act as important support due to previous price reactions. On the other hand, the 50-day moving average (green line) limited the upward movement from the beginning of June. The share price fell by more than 20% from the June highs, but in recent days the market stopped its downward movement and started to consolidate. Source: xStation5