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U.S. to Scrap Pre-Departure Covid Tests for Incoming Air Travelers

Stock Markets Jun 10, 2022 10:48
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By Sam Boughedda

According to a Reuters report Friday, the U.S. will drop pre-departure Covid-19 test requirements for international travelers entering the country starting Sunday.

At present, fully vaccinated travelers can enter the U.S. if they provide proof of vaccination status and a negative COVID-19 test. However, Reuters said, citing a senior administration official, that the testing requirement will be dropped after heavy lobbying by airlines and the travel industry.

The Biden administration will reportedly announce the move Friday, stating that it determined, based on the science and data, that the requirement is no longer necessary. They added that the CDC will reassess the situation in 90 days.

While many countries worldwide have scrapped all travel rules, the U.S. still requires proof of vaccination and air travelers to test negative within one day before their flight to the country.

However, the testing rule could be reinstated "if there is a need," the official told Reuters.

Airlines have expressed concerns that Americans are not traveling internationally due to concerns about testing positive and being stuck abroad.

The news sent airline stocks higher initially, but all have pulled back with the broader market and worries about inflation and a recession. American Airlines (NASDAQ:AAL), United Airlines Holdings, Inc. (NASDAQ:UAL), Delta Air Lines, Inc. (NYSE:DAL), and Southwest Airlines Co. (NYSE:LUV), all fell between 2-4% in early trading Friday.

Cruise stocks also saw an initial jolt higher on the news, but also have pulled back. Carnival Corporation & plc (NYSE:CCL), Norwegian Cruise Line (NYSE:NCLH), and Royal Caribbean Cruises Ltd. (NYSE:RCL) are down between 2-5% Friday.

U.S. to Scrap Pre-Departure Covid Tests for Incoming Air Travelers
 

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