By Mackenzie Tatananni
Hertz Global, Clear Secure, and other shutdown winners retreated on Friday after a breakthrough in Washington signaled a change in fortune for the beneficiaries of recent travel disruptions.
The Senate voted early Friday to fund all parts of the Department of Homeland Security except Border Patrol and Immigration and Customs Enforcement, effectively ending the shutdown that sparked an exodus of hundreds of airport workers and disrupted travel across the U.S.
It isn't a done deal yet. The House must also pass the legislation, which might not happen until the weekend, and President Donald Trump would have to sign it. Still, investors are taking the news as a sign that weeks of travel chaos might clear up soon. Beneficiaries of the shutdown -- namely Hertz, Avis Budget Group, and Clear -- were falling Friday.
Hertz and Avis declined around 3% each while Clear fared even worst, slumping 8.7%. Friday's losses put shares on pace for their largest single-day decline since October. The benchmark S&P 500 index was down 0.8%.
Just a day earlier, Hertz shares experienced their largest same-day jump since December, making the pullback that much more jarring. The rental car company said Thursday that searches to its website had surged 15% over the prior week, which it attributed to travelers looking for other ways to travel amid ongoing delays at airports.
One in three customers are renting cars specifically for road trips and driving vacations, the company said. The news also lifted Avis shares, which ended the session up nearly 13%.
Hertz has leaned into this newfound demand, offering 25% discounts on one-way and last-minute rentals. But in light of Friday's development, it's unclear whether demand will drop off now that the shutdown is partly resolved.
It's unclear just how quickly staffing shortages among the Transport Security Administration will subside, too. Although the bill funds the TSA, nearly 500 employees already have quit.
Clear Secure was expected to be a clear winner from a prolonged shutdown and the possibility of more layoffs. The company operates a biometric identity platform that allows passengers to bypass the traditional airport security line.
D.A. Davidson analyst Wyatt Swanson even lifted his price target on Clear stock Thursday, arguing that the shutdown acted as a "strong tailwind" for core subscription sign-ups. Still, Swanson acknowledged other factors could drive the stock higher in the near term, such as an extended partnership with American Express.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 27, 2026 12:19 ET (16:19 GMT)
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