Connect with us

Hi, what are you looking for?


These two stocks could benefit from Southwest Airlines flight cancellations

Hotel stocks stand to benefit this quarter from the recent flight cancellations at Southwest Airlines Co, says Patrick Scholes. He’s an Equity Research Analyst at Truist Securities.

Vail Resorts Inc could be a beneficiary

Southwest continued to cancel flights on Wednesday even though operations at peers improved further on easing weather conditions.

It cancelled 60% of its schedule today that, Scholes expects, could benefit the likes of Vail Resorts Inc (NYSE: MTN).

You may be staying at a hotel, Southwest is paying. Or if you’re at a resort, the skiing is fantastic. People might want to add a few more days onto their trip. So, historically, we’ve seen these types of issues to be a net benefit for the hotels.

Scholes has a price objective of $292 a share on Vail Resorts, which suggests about a 25% upside from here.

Scholes is also bullish on Hyatt Hotels

Another name he says could benefit from the Southwest disruptions is Hyatt Hotels Corporation (NYSE: H) that’s currently down nearly 20% from its year-to-date high.

According to Scholes, the multinational is an even better pick now that China seems to be reopening. On CNBC’s “The Exchange”, he noted:

China is still down about 50% in RevPAR. So, there could be some real upside for companies such as Hyatt Hotels, which historically has gotten about 10% of their EBITDA directly from China.

Scholes’ buy rating on Hyatt Hotels Corporation is also related to its financial results for the third quarter that last month came in ahead of Street estimates.

The post These two stocks could benefit from Southwest Airlines flight cancellations appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.