Lower fuel costs boost travel sector stocks after reports of advancing US-Iran negotiations ease supply concerns.
Shares of airlines and cruise operators climbed as oil prices fell following reports of progress in US-Iran nuclear deal talks. Brent crude dropped 1.8% to USD 78.50 a barrel, reducing fuel expense pressures for travel companies.
The sector had underperformed in recent weeks amid rising energy costs, with the S&P 500 Airlines Index down 4.2% month-to-date. Analysts noted that a potential easing of sanctions could add 1-2 million barrels per day to global supply.
Travel stocks led gains in early trading, with Delta Air Lines (DAL) up 2.3% and Carnival Corp (CCL) rising 1.9%.