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).

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:

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.