Uber Technologies (UBER) shares leaped higher Tuesday, while its smaller rival Lyft (LYFT) posted solid gains, after the ride-sharing groups followed major U.S. airlines in ending their passenger and employee mask mandates.
Uber said that, as of today, riders and drivers will no longer be required to wear masks when working or travelling within the company's system, while Lyft said masks will be optional and that health and safety risks will no longer appear as cancellation option on the ride-sharing app.
The moves followed a ruling from U.S. District Judge Kathryn Kimball Mizelle in Tampa, Florida yesterday which struck down the U.S.'s 14-month old mandate, established by the Centers for Disease Control as well as the U.S. Transportation Security Administration, as a result of a case brought by non-profit interest group called Health Freedom Defense Fund.
U.S. airlines were quick to react, with United Airlines (UAL) moving first to eliminate its own mandate to wear masks on planes, with rivals American Airlines (AAL), Southwest Airlines (LUV) and Delta Air Lines (DAL), quickly following suit with immediate suspensions of their own in-flight rules.
“We are relieved to see the U.S. mask mandate lift to facilitate global travel as Covid-19 has transitioned to an ordinary seasonal virus,” Delta said in a statement.
Uber shares were marked 4% higher in late-morning trading at $33.04, while Lyft gained 3.7% to change hands at $35.87 each.
United shares were marked 3.9% higher in at $45.70 each while Delta rose 3.2% to $43.50 and American Airlines gained 5% to $19.50 each.
Uber CEO Dara Khosrowshahi said earlier this year that uncertainly linked to the Omicron wave of the Covid pandemic would continue to affect ride activity, but noted that "mobility is already starting to bounce back, with gross bookings up 25% month-on-month in the most recent week."
The group predicted in February that it will report $5 billion in operating profits by 2024, compared to a loss of $800 million in 2021, with gross bookings rising to between $165 billion and $175 billion. That tally would represent a 140% gain from the $90 billion in gross bookings recorded last year.
Last week, Delta posted a narrower-than-expected first quarter loss, with a big boost in revenues, thanks to what it called a "strong rebound in travel demand" as the Omicron infection wave faded over the final month of the period.
Delta CEO Bastian told CNBC at the time that he hoped the White House would lift its pandemic-era mask mandate on planes and in airports, which was slated to last until May 3, but noted that demand would continue to improve even if it were to be extended.
Last month, Airlines for America, a lobby group representing the biggest U.S. domestic and international carriers, asked the Biden Administration to drop predeparture test requirements, following similar decisions in the U.K. and Europe, and said the current mandate requiring masks on planes and in airports was outdated, noting high levels of public immunity to Covid variants, vaccine and therapeutics availability and flight cabin air quality.
