Top Stocks to Watch After Weekend Chaos At US Airports

US travelers and airlines are still experiencing disruptions, hours after the Federal Aviation Administration (FAA) ended its nationwide ground stop on air travel. Airlines have canceled thousands of flights, and airports are still struggling to recover. This article highlights some of the top stocks to watch when the markets open on Monday.

Airlines Like Southwest, Delta, and JetBlue

American airlines are having a tough year as rising jet fuel prices hit their profit margins. Delta Air Lines (NYSE:DAL) is down nearly 10% from its year-to-date high, while Southwest Airlines (NYSE:LUV) and JetBlue Airways (NASDAQ:JBLU) have fallen 18% and 43%, respectively.

The new crisis in airlines will likely affect their revenues because of the cancellations. Data compiled by FlightAware, a top flight tracking service, estimates that 4,000 flights scheduled on Sunday were canceled or delayed, much lower than the 15,000 that were delayed or canceled on Saturday. 

L3Harris in Spotlight Because of the Outage

The weekend chaos will put the spotlight on L3Harris (NYSE:LHX), the company that triggered the outage. The outage began when the company carried out a routine upgrade at a remote air traffic facility, replacing aging analog copper wire with modern fiber optic cable.

In theory, the stock should fall as investors weigh the risk of contract cancellation. In practice, however, it may rise because that risk is low. There is also a chance that Congress will approve additional spending on airport upgrades. Transportation Secretary Sean Duffy has asked for more than $50 billion to finance them.

Other companies that may benefit from more funding are RTX (NYSE:RTX), Leidos, and Thales. 

Booking Holdings and Expedia

Top travel websites like Booking Holdings (NASDAQ:BKNG) and Expedia (NASDAQ:EXPE) have also struggled this year amid the ongoing travel disruptions. Booking has dropped by 28% from its August highs, while Expedia has fallen by 24% in the same period.

These companies may be forced to issue refunds to their customers because of the ongoing flight cancellations in the US, their biggest markets. 

The same is true among top hotel and casino companies like Marriott, Hilton, Caesars, and Las Vegas Sands. Cruise companies like Carnival and Royal Caribbean may also experience some cancellations.

However, it is worth noting that the weekend turmoil is temporary and will likely have only a minor impact on these companies. Historically, all of these firms have endured similar events, with the Covid-19 pandemic being the most severe, and they all bounced back.

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